To calculate the Cost Per Therm (CPTH):
\[ CPTH = \frac{TC}{\frac{V}{1000}} \]
Where:
A cost per therm is a term used to describe the cost of 1000 cubic feet of volume of some material, which is most often natural gas. A therm is simply a unit of measure equal to 1000 cubic feet.
Let's assume the following values:
Using the formula:
\[ CPTH = \frac{200}{\frac{1500}{1000}} = \frac{200}{1.5} = 133.33 \text{ dollars per therm} \]
The Cost Per Therm is $133.33 per therm.
Let's assume the following values:
Using the formula:
\[ CPTH = \frac{300}{\frac{2500}{1000}} = \frac{300}{2.5} = 120 \text{ dollars per therm} \]
The Cost Per Therm is $120 per therm.