With the illustrative inputs below, the result is 11.1111 per usable unit.
Try this with your own numbersFormula and worked example
Cost per usable unit = purchase cost / (purchased units × usable share)
| Input | Example |
|---|---|
| Purchased material cost | 1,000 |
| Purchased units | 100 |
| Usable share | 90 % |
| Calculated result | 11.1111 per usable unit |
Choose reliable inputs
Plan materials, travel and crew time before committing to a price. For this cabinet installation calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one installation.
- Cabinetry: include the portion belonging to this installation or reporting period, and record where the value came from.
- Fitting labour: include the portion belonging to this installation or reporting period, and record where the value came from.
- Site protection: include the portion belonging to this installation or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Why is purchase price per unit below usable cost?
Yield must be greater than zero. Keep purchased and usable quantities in the same measurement unit.
What if this input changes?
If purchased material cost rises by 10%, this example changes by 1.1111 per usable unit. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.