per unit production cost is

per unit production cost is a key metric in manufacturing and e-commerce pricing strategies. It represents the total cost incurred to produce one unit of a product, including materials, labor, overhead, and logistics. Understanding per unit production cost is essential for pricing products competitively while maintaining profitability. This figure guides decisions on bulk purchasing, outsourcing, and inventory management. Businesses often use this metric in cost-benefit analyses and forecasting. By reducing production costs through improved processes or supplier negotiation, companies can offer better prices or increase their margins in competitive markets.