Cost per Unit Calculation for Simba Company

What is Simba Company's material cost per unit of output if it's $9.68 and the output is specified as 2.20 pounds at $4.40 per pound?

Final answer:

Simba Company's material cost per unit of output, when the material cost is $9.68 and output is 2.20 pounds at $4.40 per pound, is $1.

Simba Company's material cost per unit of output can be calculated by dividing the total material cost by the total quantity. In this case, the material cost is $9.68 and the output is 2.20 pounds at $4.40 per pound. To find the cost per unit, we simply divide the material cost by the output quantity: $9.68 / (2.2 pounds x 4.40) = $1.

This calculation method follows the same principle as calculating the cost of other items, such as fruits. For example, if the cost of apples is 50 cents per apple and you want to find the total cost of 10 apples, you would multiply the number of apples by the cost per apple: 10 apples x $0.50 = $5.00.

By understanding the cost per unit calculation, businesses like Simba Company can determine their material costs accurately and make informed decisions about pricing and production.