price per unit

price per unit refers to the cost of a single item when purchasing in bulk. This price is calculated by dividing the total cost of an order by the number of units being purchased. The price per unit is a key metric for businesses to understand the cost-effectiveness of their inventory purchases. For example, if a company buys 100 items for $500, the price per unit would be $5.00. This calculation helps businesses set retail prices, manage margins, and determine profitability on each item sold.