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.
(Average fixed cost + Average variable cost) x Number of units = Total cost. For example, a company is incurring $10,000 of fixed costs to produce 1,000 units (for an average fixed cost per unit of $10), and its variable cost per unit is $3. At the 1,000-unit production level, the total cost of the production is: