UNIT PRICE
 
Example 1 | Example 2 | End of Page
 
If you want to compare the costs of goods, you need to determine what units, from one good to the next, you want to compare. You do this by finding the unit price of each good.
 
Examples:
 
1. Scott really likes chocolate bars, and wants to get the best deal possible on them. Is it better for him to buy 3 for $2.25 or each one at $ .79 each.
 
a) Determine the cost of each chocolate bar by dividing $ 2.25 by 3

$2.25
= $0.75

 3
   
It is cheaper for Scott to buy 3 chocolate bars for $2.25 because they work out to be $ .75 each compared to $ .79 which they would cost if he bought them separately.
 
2. Becky eats cereal for breakfast every morning. Is it better for her to buy a 550 g box of cereal for $2.50, or a 1 kg box for $5.00?
 
a) Work out the cost per gram of the 550 g box (divide by 550)
 
550 g costs $ 2.50
 
1 g costs

$2.50
= $0.004545

 550
   

 

1 g of cereal from the 550 g box costs $ 0.004545
 
 
b) Work out the cost per gram of the 1 kg (1000 g) box
 
1000 g costs $ 5.00
 
1 g costs

$5.00
= $0.005

 1000
   

 

1 g of cereal from the 1000 g box costs $ 0.005

 

Working out the cost per gram of each box of cereal, Becky realizes that it is a better deal for her to buy the 550 g box.

 

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