Cost Per Ounce Definition

What is the cost per ounce?

A cost per ounce is the total cost to produce a unit per weight of a unit made in ounces.

Cost Per Ounce Formula

The following formula is used to calculate the cost per ounce.

CPO = TC / TW

  • Where CPO is the cost per ounce ($/O)
  • TC is the total cost per unit
  • TW is the total weight per unit in ounces

Cost Per Ounce Example

How to calculate cost per ounce?

The following is an example problem for calculating the cost per ounce or cost per unit of weight for any product or good.

First, the total cost per unit must be calculated. For more information on this, you can visit the price per unit calculator linked below.

In short, if you have the total number of units sold and the total cost the cost per unit is calculated by dividing the cost by units. In this example, the total cost is $1000.00 and the number of units is 10.

Cost Per Unit = $1000.00 / 10 = $100.00

Next, the total weight per unit must be determined. Just as was done with the cost per unit, the weight per unit can be calculated by dividing the total weight by the number of units.

In this case, the total weight is 500 ounces, and the total unit is 10.

Ounces per unit = 500 / 10 = 50 ounces/unit

Finally, using the formula above, cost per ounce can be calculated using the cost per unit and ounces per unit calculated above:

CPO = TC / TW

CPO = $100.00 / 50

CPO = $2.00 per ounce.

FAQ

What is the cost per ounce?

Calculating the cost per ounce is done by dividing the total cost per unit by the total weight per unit.

Related Calculators

Cost Per Ounce Calculator

Enter the total cost per unit and the total weight per unit in ounces into the calculator to determine the cost per ounce.

cost per ounce calculator
cost per ounce formula