Understanding the cost of each unit you produce is essential to ensure your business remains profitable. To calculate the cost per unit, add all of your fixed costs and all of your variable costs ...

Every business owner should understand the cost of production. Whether you manufacture tires, bake cookies or wash windows for a living, you need to know your costs per unit to ensure you are charging ...

Discover the differences between absorption and variable costing methods, how they impact financial statements, and why GAAP ...

The Weatherhead School of Management, part of Case Western Reserve University, provides a succinct definition of break-even analysis on its Web site of the same name: “On the surface, break-even ...

Mary Hall is a editor for Investopedia's Advisor Insights, in addition to being the editor of several books and doctoral papers. Mary received her bachelor's in English from Kent State University with ...

When Software as a Service (SaaS) products scale, it might be tempting to think that traditional unit economics rules no longer apply. Expectations of economies of scale further fuel this notion. Yet, ...

Aircraft utilization is one of the important measures of operational efficiencies that low-cost airlines count on to lower unit costs. Higher utilization will result in lower fixed costs per unit, as ...