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Unit selling price

The unit selling price is the amount a company charges for a single item of a product or use of a service. Setting the unit selling price is an important management decision because it has a direct effect on sales volumes. Managers tend to track sales against prices over time so they can make good decisions about setting and adjusting unit prices.

Some companies refer to their unit selling price as the “recommended selling price” for accounting purposes—so that sales discounts can be tracked separately. Trends related to unit sales and prices are often included in the notes to financial statements.

More about unit selling price

The sample income statement below shows how unit selling prices are used to calculate a company’s revenue.

Unit selling price