Part Cost Calculator

Calculate Part Cost



Formula

The formula to calculate the part cost is:

\[ PC = \frac{TC}{P} \]

Where:

What is Part Cost?

Part cost refers to the cost per unit of a product, calculated by dividing the total production cost by the total number of parts produced. This metric is crucial for pricing, budgeting, and financial analysis in manufacturing and production processes.

Example Calculations

Example 1:

Using the formula:

\[ PC = \frac{5000}{1000} = 5 \text{ \$/unit} \]

Example 2:

Using the formula:

\[ PC = \frac{7500}{1500} = 5 \text{ \$/unit} \]