Enter the units of production lost (units) and the expected revenue per unit ($/unit) into the Calculator. The calculator will evaluate the Cost Of Lost Production. 

Cost Of Lost Production Formula

CLP = UPL * RPU

Variables:

  • CLP is the Cost Of Lost Production ($)
  • UPL is the units of production lost (units)
  • RPU is the expected revenue per unit ($/unit)

To calculate the Cost Of Lost Production, multiply the units of production lost by the expected revenue per unit.

How to Calculate Cost Of Lost Production?

The following steps outline how to calculate the Cost Of Lost Production.

  1. First, determine the units of production lost (units). 
  2. Next, determine the expected revenue per unit ($/unit). 
  3. Next, gather the formula from above = CLP = UPL * RPU.
  4. Finally, calculate the Cost Of Lost Production.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

units of production lost (units) = 100

expected revenue per unit ($/unit) = 2100