To compute the unit price of a product, what should you do?

Prepare for the UCF FIN2100 Midterm 2 Exam. Study flashcards and multiple choice questions with hints and explanations for better understanding. Equip yourself for success!

The unit price of a product is determined by dividing the total price by the number of units. This calculation allows consumers to understand how much they are paying for a single unit of the product, making it easier to compare prices across different products or quantities. By using this method, you can assess whether you are getting a good deal based on the price per unit, which is especially important for budgeting and making informed purchasing decisions.

For instance, if a pack of 12 bottles costs $6, dividing the total price ($6) by the number of bottles (12) gives a unit price of $0.50 per bottle. This is a critical skill in personal finance as it helps in evaluating value and making cost-effective choices. Other methods presented in the options do not yield the correct unit price, thus reinforcing the importance of this calculation.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy