Unit Price
The "Unit Price" (or "unit cost") tells us the cost per liter, per kilogram, per pound, and so on, of what we want to buy.
Just divide the cost by the quantity:
Example: 2 liters for $3.80 is $3.80/2 liters = $1.90 per liter
Comparing
Comparing Unit Prices can be a good way of finding which is the "best buy".
Example: What is best
- 2 liters of Milk at $3.80, or
- 1.5 liters of Milk at $2.70 ?
In this case the "Unit" is 1 liter, and the Unit Prices are:
- $3.80 / 2 liters = $1.90 per liter
- $2.70 / 1.5 liters = $1.80 per liter
So the lowest Unit Price (and the best bargain) is 1.5 liters at $2.70.
But it does not tell us the quality of what we are buying, but it can help us make a decision.
Per Item
If something is sold in number of items (for example "10 pencils") then the same method can be used:
Example: What is best
- 10 pencils for $4.00, or
- 6 pencils for $2.70 ?
Here is the Unit Cost:
- $4.00 / 10 = $0.40 per pencil
- $2.70 / 6 = $0.45 per pencil
So the lowest Unit Price (and the best bargain) is 10 pencils for $4.00
Which way do I divide?
Think: We want to know the price for one unit.
So put the price on top: PriceQuantity