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Cost Per Hundred Formula:
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Cost per hundred is a financial metric that calculates the cost for every 100 units of a product or service. It's commonly used in procurement, manufacturing, and retail to standardize cost comparisons across different quantities.
The calculator uses the following formula:
Where:
Explanation: The formula first calculates the cost per single unit, then multiplies by 100 to get the cost per hundred units.
Details: Calculating cost per hundred allows for easy comparison between products purchased in different quantities. It helps in budgeting, cost analysis, and making informed purchasing decisions.
Tips: Enter the total cost in USD and the number of units. Both values must be positive numbers (total > 0, units ≥ 1).
Q1: Why calculate cost per hundred instead of cost per unit?
A: Cost per hundred provides a standardized metric that's often easier to compare, especially when dealing with large quantities.
Q2: Can I use this for services as well as products?
A: Yes, you can use this calculation for any item that can be quantified in units, including services measured by hours or sessions.
Q3: How does bulk purchasing affect cost per hundred?
A: Typically, bulk purchasing reduces the cost per hundred due to economies of scale and volume discounts.
Q4: Should I include taxes and shipping in the total cost?
A: For accurate comparisons, include all costs associated with the purchase (product cost, taxes, shipping, etc.) in the total.
Q5: Can I calculate cost per thousand with this formula?
A: Yes, simply multiply the unit cost by 1000 instead of 100 in the formula.