How do you calculate the cost of production per unit in e-commerce?

The cost per unit should be calculated to set the price high enough to profit. There is a simple formula to evaluate the cost of production per unit. Mathematically, it can be represented as:

(Total fixed costs + Total variable costs) / Total units produced

Let's assume that the total (fixed + variable) cost is $2000. And the total units produced is 200. By putting it into the formula, we get:

2000 / 200 = 10

Interpretation of the result: We have $10 of the production cost per unit.