The formula to calculate the Cost Per Quantity (CPQ) is:
\[ \text{CPQ} = \frac{\text{TC}}{\text{TQ}} \]
Where:
Cost per quantity defines the average cost of one unit of quantity. The quantity can be a single piece or a group of pieces. It is a useful metric for understanding the cost efficiency and pricing strategy of products or services.
Let's assume the following values:
Using the formula:
\[ \text{CPQ} = \frac{1000}{250} = 4 \]
The Cost Per Quantity (CPQ) is $4 per unit.
