Unit Prices

Question 16 • POP Financial Math 26/27

What can you do when the unit prices for two comparable items are listed using different units of measure?

Answer

The secondary units don’t affect the cost. As long as both prices are in dollars or cents, you can compare the two.

The unit prices are based on the cost of the whole package, so divide each base cost by each unit price to get comparable units.

Use conversion rates to change one unit into the other unit, so that both prices are listed using like units.

Unit prices are ratios, so you can add the two prices together and divide by the smaller unit price to get a usable number.

Explanation

To compare unit prices fairly, both prices must use the same unit of measure. Use a conversion rate to change one unit into the other—for example, convert ounces to pounds—then compare the prices per matching unit. Choice C describes this approach.

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