30S Applied Math Mr. Knight – Killarney School Slide 1 Unit: Personal Finance Lesson: Unit Pricing Unit Pricing Learning Outcome B-1 PF-L4 Objectives: Perform Calculations relating to Unit Pricing

30S Applied Math Mr. Knight – Killarney School Slide 2 Unit: Personal Finance Lesson: Unit Pricing Unit pricing is a way to directly compare the prices of competing products. Different brands are frequently packaged in different quantities and it can be difficult to compare the prices (this is also true for different sizes of the same product of one producer). For example, if four litres of juice cost $4.80, the price of one litre is $1.20. In this example, the unit is one litre. By determining the price per litre, we can directly compare the price of different brands and sizes. While price is not the only factor to consider, most consumers want to get the best value for their money. Theory – Unit Pricing Intro

30S Applied Math Mr. Knight – Killarney School Slide 3 Unit: Personal Finance Lesson: Unit Pricing Unit prices are the cost of one unit of a consumer product. In order to do unit pricing for comparison purposes, you will first find a common unit of the items to be compared. In other words, find some quantity of each that is convenient to use. That would be mL, L, g, kg, 100 mL, 100 g, square units, tablets, bars, rolls, et cetera. You will then divide the price of each article by its number of units, and the result will be the unit price. A comparison is then possible. Theory – Calculating Unit Prices

30S Applied Math Mr. Knight – Killarney School Slide 4 Unit: Personal Finance Lesson: Unit Pricing Suppose that you wanted to purchase some high- quality paper for your printer. The store offers two packages: 20 sheets for $2.89 and 50 sheets for $5.69. The unit price for the 20-sheet package is $2.89  20 = $ per sheet The unit price for the 50-sheet package is $5.69  50 = $ per sheet Therefore, if you are concerned only with the best price, the 50-sheet package is the better buy. Example – Calculating Unit Price

30S Applied Math Mr. Knight – Killarney School Slide 5 Unit: Personal Finance Lesson: Unit Pricing There are other factors that must also be taken into consideration. These are just some of the considerations other than price. You can probably come up with many more from a personal point of view. Theory – Other Factors Reputation of the producer Would the buyer get a replacement if there is a defect in the product? Size of the package If it is bigger than you need, what is the shelf life? Quality A high-quality product may do a better job or last longer than a low-quality product. Your preference If you buy a brand that you do not like, it may be wasted.

30S Applied Math Mr. Knight – Killarney School Slide 6 Unit: Personal Finance Lesson: Unit Pricing Test Yourself

30S Applied Math Mr. Knight – Killarney School Slide 7 Unit: Personal Finance Lesson: Unit Pricing Test Yourself

30S Applied Math Mr. Knight – Killarney School Slide 8 Unit: Personal Finance Lesson: Unit Pricing Test Yourself