Accounting and Finance Foundations

Unit 2

Accounting and Finance Foundations Unit 2: Accounting and Finance Math Workshop 133

Accounting and Finance Math Workshop

Chapter 5 Student Guide

Lesson 5.1 Unit Prices

Many items are packaged in ways that make it difficult to compare them easily with competing brands.

For example, one product may be packaged in an 8 oz. jar while another brand uses a 12 oz. jar.

To help shoppers compare the costs of products, many stores post unit prices on their shelves. The unit

price is the price of one item or one measure of the item. It may be an ounce, a pound, a quart, a dozen,

a hundred feet, or some other measure. If unit prices are not posted, you have to calculate them to

compare costs.

Example

Glow toothpaste costs $1.28 for a 6 oz. tube. Starbright toothpaste costs $1.99 for a 4.6 oz. tube.

Which brand costs more per ounce? How much more?

Solution:

Divide Glow price by 6 to find price per ounce: $1.28/6 = $0.213

Divide Starbright price by 4.6 to find price per ounce: $1.99/4.6 = $0.433

Starbright costs $0.22 cents more per ounce. ($0.433 – $0.213 = $0.22)

MATH TIP

1 lb = 16 oz

1 ton = 2,000 lb

1 ft = 12 in

1 yd = 3 ft

1 qt = 2 pt

1 gal = 4 qt

Group Pricing

Stores may have one price for a single unit and another price for a group of two or more units. For example,

soup may be sold for $0.89 a can or 3 cans for $2.60. If you buy three cans, you pay less than $0.87 a can

($2.60/3 = $0.86666).

Example

Corn is selling at 3 cans for $1. What is the unit price of a can of corn?

Solution:

Divide the group price by the number of units to find the price per unit.

$1/3 = $0.333, or $0.34 price per one can of corn.