Question:

How to calculate average unit cost by type?

by  |  earlier

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Generic example:

Total Cost $500,000

Total Widgets 5,500

Total Widget A 4,000

Total Widget B 1,500

How do I get unit cost for widget A & widget B?

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1 ANSWERS


  1. A. 4000 / 5500 = 73%

    B. 1500 / 5500 = 27%

    A. .73 x $500,000 = $365,000 / 4,000 = 91.25 per unit

    B. .27 x $500,000 = $135,000 / 1,500 = $90.00 per unit.

    Edit:

    Actually, in this generic example, the unit costs would be equal. (Differences shown are due to rounding only.)  You would need costs for the various types of Widgets.

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