The formula to calculate the price per cwt is:
\[ \text{Price Per Cwt} = \left( \frac{\text{Total Price}}{\text{Weight}} \right) \times 100 \]
Where:
Price per cwt, or cost per hundredweight, is a measure used to compare the cost efficiency of different products or commodities that have varying weights. It is commonly used in industries such as agriculture, shipping, and wholesale purchasing. This unit of measure allows for a standardized comparison by pricing items per 100 pounds, regardless of their total weight.
Let's assume the following values:
Using the formula to calculate the price per cwt:
\[ \text{Price Per Cwt} = \left( \frac{500}{250} \right) \times 100 = 200 \text{ $/cwt} \]
The price per cwt is $200 per hundredweight.
