How cost per unit impacts profitability

By dividing the overall production cost by the quantity of units produced, one may determine the average cost per unit. Depending on seasonal demand or other market fluctuations, the average cost per unit may alter over time, but over the long run, it typically normalizes. Businesses that have lower cost per unit typically maintain a higher level of industry competition.

DISCLAIMER: The content provided is for general informational purposes only. Epes Transport Services, LLC and its affiliates (“Epes”) makes every effort to ensure the accuracy of the information presented; however, the information herein is provided without any warranty whatsoever, whether express, implied or statutory. In no event shall Epes be liable for any direct, incidental, consequential, or indirect damages (including loss profits) arising out of the use of the information presented, even if Epes has been advised of the possibility of such damage, or (ii) any claim attributable to errors, omissions, or other inaccuracies in connection with the information presented.