Demonstrates the unit cost calculation and how to identify a unit cost problem. Unit Cost = Total Cost / Total Units

1. Unit Cost Calculation Definition
● Total expense to produce 1 unit of goods
● Problems give cost value for multiple units
○ Unit types come in forms such as pounds, kilograms,
grams, ounces, liters, etc.
● We need to find the cost per 1 unit type
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2. Unit Cost Example
● A 5 pound bag of coffee costs $20
● What is the unit cost for each bag of coffee?
● Unit Cost = Total Cost / Total Units
● Unit Cost = $20 / 5 pounds
● Unit Cost = $4 per pound
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3. Fundamental Rule of Counting Calculator
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1. 3 pound bag for 11.25
2. 4 ounce jug for $30
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