Cost per Unit
The cost per unit (often denoted cost/unit) is the cost of one unit of whatever is being purchased. This could be:
We can use the following formula to calculate cost per unit:
\(Cost/Unit=As-Purchased \ Cost \div \ total \ number \ of \ units\),
where As-Purchased Cost (APC) is the cost paid to the supplier for the as-purchased quantity (APQ) of products you purchase. To review APQ, visit our Yield Percent page.
Total Cost
When we have calculated the Cost/Unit, we can use it to determine the Total Cost using the general formula:
\(Total \ Cost = Number \ of \ Units \times Cost/Unit\)
Note: The units used in 'Number of Units' and 'Cost/Unit' must be the same. (For example, we can use the above formula to directly calculate the total cost of 4lbs of flour at $10/lb, but cannot use it for 4kgs of flour at $10/lb).
Edible Portion Cost (EPC)
The edible portion cost (EPC) is the cost per unit of the edible portion quantity (EPQ) of products purchased. To review EPQ, visit our Yield Percent page. To calculate EPC, we use the formula:
\(Edible \ Portion \ Cost = \frac{APC}{Yield \ Percentage}\),
where \(Yield \ Percentage=\frac{APQ}{EPQ}\) is expressed as a decimal.
Cost per Unit
Solution:
We see that if two corns cost $4.00, then one corn should cost half of that amount, $2.00. In this case, one unit is one corn, so using the cost per unit formula, we have the calculation:
\(Cost/Corn = $4.00 \div 2 \ corn= $2.00\)
So, the cost is $2.00 per corn (or $2.00/corn).
Solution:
From the question, we know that the APC=$12.50 (per bag or 10 pounds of flour) and the total number of units is 10 (pounds). In this case, one unit is one pound, so substituting these values into the cost per unit formula gives:
\(Cost/Pound = $12.50 \div 10 \ pounds = $1.25\)
So, the cost is $1.25 per pound of flour (or $1.25/pound).
Total Cost
Solution:
From the question, we know that the number of units purchased is 2 (bags) and the cost/unit is $12.00/bag. Since both values are in the same units (bag), we can directly calculate the total cost using the general formula as follows:
\(Total \ Cost = 2 \ bags \times $12.00/bag = $24\)
So, the total cost for both bags of flour is $24.00.
Solution:
From the question, we know that the number of units being purchased is 4 (oranges), but do not know the cost per unit (1 orange). Instead, we know that a box of 6 oranges costs $9.00, so we first determine the cost per unit using this information:
\(Cost/Orange = $9.00 \div 6 \ oranges = $1.50\)
Since both the number of units and the cost/unit are in the same units (oranges), we can directly calculate the total cost using the general formula as follows:
\(Total \ Cost = 4 \ oranges \times $1.50/orange = $6\)
So, the total cost for 4 oranges is $6.00.
Solution:
In this case, the units in the given problem are the not the same: cost per unit is in grams (g), while the number of units purchased is in kilograms (kg). So before using the total cost formula, we need to convert from one unit into the other:
\(1kg = 1000g\)
We also need to find the cost per unit:
\(Cost \ per \ unit = $12 \div 250g = $0.048/g\)
Finally, substituting the values we've found into the total cost formula gives:
\(Total \ Cost = 1000g \times $0.048/g = $48\)
So, the total cost for 1kg (or 1000g) of turmeric powder costs $48.00.
Solution:
In this case, the units in the given problem are the not the same: cost per unit is in kilograms (kg), while the number of units purchased is in pounds (lbs). So before using the total cost formula, we need to convert from one unit into the other:
\(1kg = 2.20lbs\)
Substituting the information we've found and from the original question into the total cost formula gives:
\(Total \ Cost = 5\cancel{lbs} \times $3.50/2.20\cancel{lbs} = $7.95\)
(the pounds units cancel each other out)
So, the total cost for 5 pounds of apples costs $7.95.
Edible Portion Cost (EPC)
Solution:
We must first determine the the yield percentage using the following steps:
\(Yield \ Percentage = \frac{15 \ pounds}{25 \ pounds}\times 100=60\%\)
Now, we can find the edible portion cost substituting the yield percentage of 0.6 (expressed as decimal) into the formula:
\(Edible \ Portion \ Cost: \frac{$35.00}{0.6}=$58.33\)
So, the edible portion cost of the corn is $58.33.