Final answer:
To calculate the royalty per unit in USD, multiply the sales price per unit by the royalty rate. If a product sells for $25 and the royalty rate is 10%, the royalty per unit is $2.50. Currency exchange rates can impact royalty amounts for international sales when reporting in USD.
Step-by-step explanation:
To calculate the royalty per unit in USD that a firm is making, you need to know the royalty rate and the revenue generated from sales on a per-unit basis. Let's take an example where a royalty is earned on a product that sells for $25 per unit. If the firm sells 5 units, the total revenues will be 5 units × $25/unit, which equals $125. If the royalty rate was a fixed percentage of the revenue, let's say 10%, then the royalty per unit would be 10% of $25, which is $2.50 per unit.
If instead the costs were also factored in, like in a situation where the firm has total costs of $130 for producing five units, this would mean that the firm operates at a loss or negative profit since the total costs exceed the revenue generated by $5. This scenario of a loss doesn't directly affect the per-unit royalty calculation unless the royalty is based on profits rather than revenues.
On the international scale, currency exchange rates can impact the perceived royalty if the sales are conducted in a different currency. For example, if a U.S. company is paid in euros but reports in dollars, fluctuations in currency exchange rates can affect the final royalty amount received when converted to USD.