Let's say I'm trying to buy and sell apples for a profit, and my goal is determine the actual average value of every single apple.
In A1, I have the price of apples from Shop #1, which is 3.00. In B1, I put down 50 since Shop #1 has 50 apples.
In A2, I put down 4.00 since that's the price of apples from Shop #2. However, in B2, I only put down 1 because the shop only sells 1 single apple.
If I take the average of A1 and A2, it will give me 3.50 as the average cost of apples. However, this is incorrect. Clearly it should be closer to 3.00 since there is a total of supply of 51 apples, and 50 of them are priced at 3.00.
Example below:
| A (Price per apple) | B (amount of apples) | |
|---|---|---|
| 1 | 3.00 | 50 |
| 2 | 4.00 | 1 |
| AVERAGE PRICE PER APPLE | 3.5 (NOT CORRECT, but excel calculates it as so) |
How do I determine this in excel?
How to calculate the average cost of something per unit that also includes # of actual supply?
How to get an average price per unit from this example dataset:
What is per unit price?
The per unit price is the price of an item per each unit that is purchased or sold. This is the same as the unit price, but worded in a different way.
Why do we use price per unit?
We use price per unit so that customers can easily calculate and decide how much quantity of a product they want to purchase. This also allows for an easy calculation for sellers to include production costs or delivery costs, for example, all in one sales price.
How do you read the price per unit?
Price per unit is read by stating the price first and then the type of units you are measuring by. For example, lunch meat at the deli is three dollars per pound or written as $3/pound.