Final answer:
Total Manufacturing Cost Per Unit can be determined by calculating either average cost or marginal cost. Average cost is total cost divided by output quantity while marginal cost is the additional cost of producing one more unit.
Step-by-step explanation:
The Total Manufacturing Cost Per Unit is a vital metric in business and economics, particularly within the field of cost accounting. This metric can be derived in two main ways: average cost and marginal cost. To calculate the average cost (AC), you divide the total cost (TC) by the quantity (Q) of output produced. For example, if producing two widgets has a total cost of $44, then the average cost per widget would be $44 divided by 2, which equals $22 per widget. In contrast, marginal cost (MC) is calculated as the change in total cost (ATC) divided by the change in output (AQ). If the first widget's cost is $32.50 and the cost for two widgets is $44.