Kristal Walton, County Director Child Welfare Concerns: Marcus Jones, District Director Address: 401 W. Commerce Oklahoma City, OK 73109 Phone: (405) 644-5700 1-800-884-1532 Fax: (405) 644-5772 Hours: 8 a.m.- 5 p.m. Monday - Friday Get directions: Map it!
What it is: Cost per unit is a measure of a company's cost to build or create one unit of product. For example, let's assume it costs Company XYZ $10,000 to purchase 5,000 widgets that it will resell in its retail outlets. Company XYZ's cost per unit is: $10,000 / 5,000 = $2 per unit.
The first chart shows that fixed costs remain $50,000 at all production levels from 100 units to 1,000 units. The second chart shows that the fixed cost per unit decreases as production increases. Hence, when 100 units are manufactured, the fixed cost per unit is $500 ($50,000 100).