Cost Per Ounce Calculator

Formula

The formula to calculate the cost per ounce is:

\[ CPO = \frac{TC}{TW} \]

Where:

CPO is the cost per ounce ($/O)
TC is the total cost per unit
TW is the total weight per unit in ounces

What is Cost Per Ounce?

A cost per ounce is the total cost to produce a unit per weight of a unit made in ounces. It helps in determining the efficiency and cost-effectiveness of production, especially in industries where weight is a critical factor.

Example Calculation

Let's assume the following values:

Total Cost (TC): $50
Total Weight (TW): 25 ounces

Step 1: Calculate the cost per ounce using the formula:

\[ CPO = \frac{50}{25} = 2 \]

The Cost Per Ounce (CPO) is $2 per ounce.