How To Work Out Cost Per Unit?

[kaw69]

Let me give it another way to simplify my request.
Without any other costs incurred at all.
My employer produces 1440000 units per annum @£0.28 per unit
My salary to produce these units is £30000 per annum so what is the cost per unit to produce?

[Peter Pedant]

divide 30000 by 1440000
and add to 0.28
it looks a bit like 0.03 ( total .31)

or

multiply 144 by 0.28 add 30 000 and redivide by 144
(zeroes are astray - but fill in as needed)

oh and good luck - sounz as tho you are doing AAT

[Buenchico]

The 28p figure is irrelevant.

If the 'cost' (in terms of your salary) of producing 1.44m units is £30,000 then that's 2.1p per unit.

[Peter Pedant]

having done this sort of course Chris
I think you are meant to add them to the basic cost

O and A level you are not meant to give redundant information
in craft courses they do and it is part of the training to filter and drill down to the proper information

[fiction-factory]

Yes, we need to know the context of the question- simplified exam question or real life. If the latter then we need more info such as whether the £0.28 figure includes kaw's salary (plus the on-costs for employers NI, pensions and maybe some ancillary costs- eg payroll fee, equipment, drinks, training, membership of association) and whether kaw is the only person involved in the production of these 1440000 units.
My guess is kaw wants to know 30000/1440000 but if so the employer's salary on- costs of maybe 25% (some say 40%) need to be added on

[fiction-factory]

A bit of duplication here
https://www.theanswerbank.co.uk/Business-and-Finance/Question1624093.html#answer-11679458

[Zacs-Master]

Impossible to say unless we know whether the 0.28p per unit includes everything. Wages / energy / raw materials / transportation / packaging / r&d costs / admin.

[Zacs-Master]

Same answer to the duplicate question also.

[dannyk13]

The OP does say //Without any other costs incurred at all//

[Old_Geezer]

Aye the question can be interpreted two ways.
Your wage may add 2.1p per unit. You decide whether the 28p covers other costs and you need to add both together, or whether you were extracting your wage from a 28p total cost, or whatever.

[ToraToraTora]

I think it's asking how much of the salary is in the 28p per unit. Just over 2p and yes the 28p is superfluous.

[AuntLydia]

I read this question as employer produces 1440000 units, gross production costs of 0.28 p per unit ( in other words his total production costs are £ £403,200) Disregarding other costs involved , calculate what percentage of that 0.28 consists of wages.

I can't do the calculation but that's how I would interpret the question