variable cost per unit formula

variable cost per unit formula is crucial for understanding financial metrics in manufacturing and e-commerce businesses. This formula calculates how much it costs to produce or source one additional unit of a product and is generally expressed as total variable costs divided by total units produced. It helps businesses determine pricing, profit margins, and break-even points. In e-commerce, this could include packaging, shipping, and product cost. Keeping variable costs low is essential for maximizing profit, especially when operating on platforms like Amazon or eBay where competition is high and price sensitivity is common.