Understanding the cost of each unit you produce is essential to ensure your business remains profitable. To calculate the cost per unit, add all of your fixed costs and all of your variable costs ...

Every business owner should understand the cost of production. Whether you manufacture tires, bake cookies or wash windows for a living, you need to know your costs per unit to ensure you are charging ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The Weatherhead School of Management, part of Case Western Reserve University, provides a succinct definition of break-even analysis on its Web site of the same name: “On the surface, break-even ...

The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and ...

When Software as a Service (SaaS) products scale, it might be tempting to think that traditional unit economics rules no longer apply. Expectations of economies of scale further fuel this notion. Yet, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Suzanne is a content marketer, writer, and ...