Unit Prices and Better Buys
At the grocery store, two boxes of the same cereal sit side by side on the shelf. One is small and one is large, and each has a different price. Which one is the better buy? Math can answer that question with a tool called the unit price.
A unit price is the cost of a single unit, such as one ounce, one pound, or one item. To find it, you divide the total price by the amount you get. Suppose a 12-ounce box costs 2 dollars and 40 cents. Dividing 240 cents by 12 gives 20 cents per ounce. Now suppose a 20-ounce box costs 3 dollars and 40 cents. Dividing 340 cents by 20 gives 17 cents per ounce. The larger box is the better buy, because each ounce costs less.
Many stores print the unit price on the shelf label, in small type near the product name, so shoppers can compare quickly. It works for different brands too, as long as the units match. You cannot compare a price per ounce with a price per pound until you convert one of them.
The lowest unit price is not always the smartest choice, however. A giant package is no bargain if half the food spoils before your family can eat it. Good shoppers compare unit prices and also think about what they will really use.