Cost Per Item Calculator

Formula

To calculate the cost per item:

\[ CPI = \frac{TC}{N} \]

Where:

$ CPI $ is the cost per item ($/item)
$ TC $ is the total cost of all items ($)
$ N $ is the number of items

What is Cost Per Item?

A cost per item is a term used to describe the average cost of one item in a group of two or more items. This metric is useful for understanding the cost efficiency of purchasing items in bulk or determining the average cost of items in a set.

Example Calculation 1

Let's assume the following values:

Total Cost $ TC $ = $100
Number of Items $ N $ = 5

Step 1: Divide the total cost by the number of items:

\[ CPI = \frac{100}{5} = 20 \]

So, the cost per item is $20 per item.

Example Calculation 2

Let's assume the following values:

Total Cost $ TC $ = $250
Number of Items $ N $ = 10

Step 1: Divide the total cost by the number of items:

\[ CPI = \frac{250}{10} = 25 \]

So, the cost per item is $25 per item.