LEGO's cost per unit is about 5 USD. Lego's price per unit depends on how large the unit is. If it is large it may cost 5.50 USD. But the average is about 5 USD.
Direct cost per unit is that cost of unit incurred to manufacture one unit of product.Formula for direct cost per unit = total direct cost / total number of units.
nit cost is the average cost of making a product and cost per unit is the marginal cost
Cost per Unit = total cost of production / total units produced
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
unit pair
Cost unit is a unit of production, service or time or combination of these, in relation to which costs may be ascertained or expressed. Ex: Toy making: Batch costing, unit of cost: per batch (ex: $500 per batch) Advertising: Job Costing, unit of cost: per Job Hospital: Operating costing, unit of cost: per patient day
Because variable cost per unit took an arrow to the knee.
Yes fixed cost remain fixed in overall amount but it varies as per unit for example if one unit produced fixed cost 50000 per unit fixed cost 50000 but if 2 units produced fixed cost remains 50000 but per unit fixed cost changed to 25000 (50000/2).
Variable cost per unit = Total variable cost / total number of units manufactured
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Total Manufacturing Cost: material cost 1000 Add: Labor cost 2000 Add: Overhead cost 3000 Total cost 6000 Number of units produced = 1000 Cost per unit = 6000/1000 Cost per unit = 6
Yes fixed cost varies between units as total overall fixed cost amount remains same but increase in number of units change the per unit fixed cost for example fixed cost of 10 will be 10 per unit in case of 1 unit produce and fixed cost per unit will be 1 in case of 10 units produced.