Unit Cost

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.


The cost of two books is $2.00. How much would it cost to buy three books of the same price?


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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