Revenue Per Unit Formula

Sales revenue 1 000 x 350 350 000.

Revenue per unit formula. Last year we sold 1 000 game consoles for 350 per piece. Calculate the profit per unit of abc ltd for the year ended on december 31 2018 if the number of units produced is 100 000. For a product based business the formula is revenue number of units sold x average price. Why the sales.

The company has achieved total revenue of 250 000 during the year ended on december 31 2018. The average revenue per unit arpu is a term used frequently in accounting for the telecommunications industry. As per its income statement the information is available for the period. Average revenue per unit is a metric used by companies that offer subscription based products and services such as mobile phone carriers and internet service providers.

The arpu provides an idea of how much the business brings in per customer. Step 2 now since the number of units produced drives by demand which forms the basis of the function for the price let us assess the average sales price per unit. Total revenue is a function of output which is mathematically expressed as. Notice that in the formula.

10 per unit the total revenue of the organization would be rs. A sample sales revenue calculation. Average revenue per unit is a metric used by companies that offer subscription based products and services such as mobile phone carriers and. Tr price p total output q for instance if an organization sells 1000 units of a product at price of rs.

It reflects the average amount of sales a company generates per subscriber or unit in a given time period usually one month. Average revenue per unit is equivalent to total revenue divided by average units or users during a period. The period end date is not the measure date for the denominator because the number of.