Correcting a backbow on a guitar with single action truss rod - Duration: 4:25. Paul Doyle 2,591 views
The cost per unit is commonly derived when a company produces a large number of identical products. The cost is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.
Variable Expenses: These are those expenses which change with the change of units of products but remain fixed relative to units of product. For example if 1 unit requires $ 10 to produce and we produce 10 units then variable cost will be $100 and if we produce 100 units it will goes to $1000. So it is changing according to quantity of units but remain fixed relative to 1 unit of product which is $10 per unit.