Lets say I can buy 200 of something for $20. but for $60, I can buy 750 of them. How can I quantify the money saved as cost per unit?
Lets say I can buy 200 of something for $20. but for $60, I can buy 750 of them. How can I quantify the money saved as cost per unit?
Total Cost of batch / quantity of items = cost per individual item. 20 dollars /200 items =10 cents per item 60$/750item= 8 cents per item. It will be helpful for you to let this equation roll in your brain for a bit and try to understand why it is true maybe.
Geometrically the same exact idea can be visualized. you can think of total cost $ being the length of a line segment, and the quantity of items as equally split portions of that line seg. If you have a total cost of 1$ (a line seg with length of 1) and get two items, the cost of each item is 50c, or the line will be partitioned equally in two exactly In half. If you had three items the line would be split into thirds and so on.