## Calculate Unit Price

### Calculate Unit Price: Learn

The unit price of an item is the cost for each unit.

The unit price may be calculated for several reasons.

It will allow an easy comparison of the cost of the same quantity of items that come in different sizes.

For example, Company A sells peaches in a can. Their can holds 16 oz of peaches at a price of \$1.60. Company B also sells peaches in a can, but their can holds 10 oz of peaches at a price of \$1.10. At first glance, Company B looks like they might have cheaper peaches because of the lower overall price, but when you calculate the unit price, you get a more accurate way to compare.

For Company A, \$1.60 ÷ 16oz = \$0.10 per ounce.
For Company B, \$1.10 ÷ 10oz = \$0.11 per ounce.

The peaches are measured with ounces as the unit, so now that we have unit prices, we can definitely tell that Company A is the better deal, if you like peaches!

Unit price can also be helpful to find the cost of a single item when many items are purchased together. This may be required if the items are going to be divided up and resold. It could also be useful if several people will pay together with each person paying their fair share of the cost based on how many items they receive.

### Calculate the Unit Price: Practice

#### What is the unit price?

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Note: Your answer should begin with a dollar sign and be rounded to the nearest cent.

What is the unit price if the total cost is for an item consisting of units?

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