Unit Operating Cost Calculator

Formula

The formula to calculate the Unit Operating Cost (OCU) is:

\[ OCU = \frac{OC}{U} \]

Where:

Unit Operating Cost (OCU): The cost associated with operating a single unit of production or service.
Significance: Helps businesses determine the cost efficiency of their operations and make informed pricing and budgeting decisions.

Let's say the operating cost (OC) is $10,000 and the number of units (U) is 500. Using the formula:

\[ OCU = \frac{10,000}{500} = 20 \]

So, the Unit Operating Cost (OCU) is $20 per unit.