Full unit cost
The purchase price or materials are not the whole cost: rent, salaries and other fixed costs are also spread over what you produce. Work out what each unit costs you and how it changes if you produce more or less.
Full cost per unit
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Variable cost
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Fixed cost share
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Profit per unit
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Margin on price
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Cost per unit by volume
With the same fixed costs spread over more or fewer units.
| Units | Fixed cost share | Full cost | Margin |
|---|
How it is calculated
- Fixed cost per unit = fixed costs for the period ÷ units produced.
- Full cost per unit = variable cost per unit + fixed cost per unit.
- Margin = (price − full cost) ÷ price.
Assumptions
- Fixed costs do not change with volume within the range of the table.
- The same variable cost for every unit.
- Amounts exclude sales taxes.