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Class 12 Entrepreneurship Notes · CBSE

Unit of Sale, Unit Price and Unit Cost

Concept of unit of sale, calculation of unit price and unit cost, gross profit or gross margin per unit, with exercises from a stationery store, beauty parlour and restaurant. CBSE Class 12 Entrepreneurship notes

Last updated: 25 Aug 2026

Notes

Unit of Sale, Unit Price and Unit Cost

Business Arithmetic — the customer is the unit, the average bill is the price

Key Definitions

Unit of Sale
The standard unit used to analyze a business's economics — the quantity, weight, or customer type in which the business measures its sales. In single-item businesses it may be a quantity (one, a dozen) or weight (kilograms); in multi-item businesses it is often the customer, diner, or bill.
Unit Price
The average billed amount per unit of sale. Unit Price = Total Billed Amount ÷ Number of Units of Sale (customers/diners).
Unit Cost
The variable cost of goods sold per unit of sale. Unit Cost = Total Cost of Goods Sold ÷ Total Units of Sale. Alternatively, if cost is a known % of selling price, Unit Cost = that % × Unit Price.
Gross Profit (Gross Margin) per Unit
Gross Profit per Unit = Unit Price − Unit Cost.

Formulas

UNIT PRICE
Unit Price = Total Billed Amount / Number of Customers (Units of Sale)
UNIT COST
Unit Cost = Total Cost of Goods Sold / Total Units of Sale
GROSS PROFIT PER UNIT
Gross Profit per Unit = Unit Price − Unit Cost

Solved Example — The Stationery Store

Solved Example

Problem

A stationery store sold the following items in one day: Student note books at ₹ 40/unit (35 sold), Reynolds pens at ₹ 40 (40 sold), Erasers at ₹ 5 (5 sold), Scale (12″ plastic) at ₹ 15 (10 sold), Flip chart at ₹ 10 (5 sold), Sketch pens (one DOZEN) at ₹ 25 (3 sold). The shopkeeper issued 50 bills (customers). If customer is the unit of sale, what is the “Unit Price”? If the cost of each stationery item is 75% of its selling price, calculate the “Unit Cost” and the “Gross Margin” per unit of sale.

Solution

Unit Price = ₹ 66; Unit Cost = ₹ 49.50; Gross Margin per unit of sale = ₹ 16.50

Key Takeaways

Key Takeaways

  • The unit of sale is the standard measure of a business's sales — quantity or weight for single-item businesses, the customer or diner for multi-item businesses.
  • Unit Price = Total Billed Amount ÷ Number of Units of Sale (customers/diners).
  • Unit Cost is the variable cost of goods sold — Total Cost of Goods Sold ÷ Total Units of Sale, or a known percentage of the selling price.
  • Gross Profit (Gross Margin) per unit of sale = Unit Price − Unit Cost.
  • So what? — Next time you buy a ₹ 25 plate of momos, the vendor is silently computing: bill ÷ customers, cost %, and the margin on you.
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