The unit cost relates to the cost of purchasing a product. The unit cost is the cost of a single item in a package or container that may hold multiple items. 
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The method of calculating unit cost from a given the cost of whole package or container is called the unitary method or method of reduction to the unit. Example: The cost of two books is $2.00. How much would it cost to buy three books of the same price? Solution: The cost of two books = $2.00 The price of one book = 200 / 2 = $1.00 From the unit cost, you can find the total cost of any number of this item. Finding the cost of three books: Cost of 3 books = 3 x Unit Cost = 3 x $1.00 = $3.00 

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