per-unit production cost is

per-unit production cost is the total manufacturing cost divided by the number of units produced. It includes direct materials, labor, and overhead. This metric is essential for pricing strategy, budgeting, and profitability analysis. For example, if a company spends $10,000 to produce 1,000 units, the per-unit cost is $10. Lowering per-unit cost can be achieved through economies of scale, process optimization, or supplier negotiation. Accurate cost analysis helps businesses set competitive prices while maintaining healthy margins, especially in industries like apparel, electronics, and consumer goods.