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