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 refers to fixed cost per unit of output. Average fixed Cost is found out by dividing the total fixed cost by the corresponding output. Formula: For instance, if the total fixed cost of a shoes factory is $5,000 and it produces 500 pairs of shoes, then the average fixed cost is equal to $10 per unit. If it produces 1,000 pairs of shoes, the average fixed cost is $5 and if the total output is 5,000 pairs of shoes, then the average fixed cost is $1 pair of shoe. From the above example, it is clear, that the fixed cost, i.e., $5,000 remains the same whether the output is 1,000 or 5,000 units.