In order to be able to calculate this average price for some of the goods you wish to sell, you must first collect data on different prices. The unit price is the cost per quantity of item you’re receiving. The contribution margin ratio is 40%. For example, if you sold 100 units and had net sales of \$20,000, the average selling price of your products is \$200. The contribution margin per unit is \$1.20. Do I buy juice at the sale price of 2 bottles with 32 oz each for \$6.00, or do I buy 1 bottle containing 72 oz for \$6.99? Calculate Now Everyday Calculation. Definition of Selling Price. References. If you are dealing with 5 prices, then to obtain the average sale price you will add these prices together and divide them by the number of … Many brands or product lines include multiple models, versions, flavors, colors, sizes, or—more generally— stock-keeping units (SKUs) . Additional per transaction payment processing fixed fees can include charges such as the \$0.30 fee charged by PayPal or \$0.25 charged by Etsy. It can be calculated using either the contribution margin in dollars or the contribution margin per unit. A selling price is the amount that a customer will pay to buy a product. Calculators » Math » Retail Markup. The per unit costs of this product when 70,000 units are produced are shown below: direct materials \$29.60 direct labor 5.80 variable overhead 2.50 fixed overhead 17.20 variable selling costs 1.80 fixed selling costs 6.70 The normal selling price of the product is \$72.90 per unit. Step 2: Determine the selling price by using the desired percentage of 20%. Selling Price The calculator answer is the item price you should list for your item in order to meet your target return. The quantity might be per item or per unit of measurement, such as ounces, grams, gallons, or liters. Now you can use our unit price calculator to calculate the cost per ounce of one or both deals, and quickly figure out which is the better bargain. To calculate the average selling price, all you have to do is divide net sales with the number of products sold. To calculate the unit price, simply divide the cost of the product by the quantity you’re receiving or check the store’s shelf label. Therefore, for John to achieve the desired markup percentage of 20%, John would need to … Price per unit metrics allow marketers to calculate meaningful average selling prices within a product line that includes items of different sizes. 20% = (Selling Price – \$17,500) / \$17,500 therefore Selling price must be: \$21,000 (selling price). Cost Per Unit can be defined as the amount of money spent by the company during a time period for producing single unit of the particular product or the services of the company which considers two factors for its calculation i.e., variable cost and the fixed cost and this number helps in determining the selling price of the product or services of company. Free calculators and unit converters for general and everyday use. If a retailer wants to earn a positive gross margin (or gross profit percentage), the selling price must include an additional amount that is added to the retailer's cost of the product. Assuming the company sold 250,000 units during the year, the per unit sales price is \$3 and the total variable cost per unit is \$1.80. This is a free online tool by EverydayCalculation.com to calculate the retail selling price of given the cost price (wholesale) and markup percentage. Cost Per Unit Definition.