price per unit formula

price per unit formula The price per unit formula is used to calculate the cost of each individual unit in a larger quantity of goods. The formula is simple: divide the total cost of the product by the number of units. For example, if 100 items cost $500, the price per unit is $5. This formula is useful for businesses when determining the per-unit cost of inventory, which is critical for pricing, profitability analysis, and cost management.