Hello, I have a problem where for every 12 units of product sold, I offer 4 free. I am trying to work out the unit cost of the product. Commission is paid on total invoiced amount (so basically the 12 units sold). I now need to calculate the impact of couriers on my unit price - to find this out, do I then divide the courier amount eg $20 by 12 units (what I have invoiced) or 16 units (the amount of product I am actually supplying)? Thank you :)

Question

Hello, I have a problem where for every 12 units of product sold, I offer 4 free.  I am trying to work out the unit cost of the product.  Commission is paid on total invoiced amount (so basically the 12 units sold).  I now need to calculate the impact of couriers on my unit price - to find this out, do I then divide the courier amount eg $20 by 12 units (what I have invoiced) or 16 units (the amount of product I am actually supplying)?  Thank you :)

anonymous · Answer

u means sold 12 units free 4 units??

anonymous · Answer

i thing should be 16...

smithy · Answer

Yes - thank you so much.  I really appreciate your help :)

anonymous · Answer

YOUR price per unit (as the entity producing or selling the units) should be per unit produced.  That would include all units, whether you sell them or give them away.