Utah Contractor Practice Exam

Which formula calculates the total material cost per unit?

1. Price per Unit + Number of Units Needed

2. Price per Unit - Number of Units Needed

3. Price per Unit x Number of Units Needed

4. Price per Unit x 3 Units Needed

The correct answer is: Price per Unit x Number of Units Needed

The calculation of the total material cost per unit is based on multiplying the price per unit by the number of units needed. This approach gives a clear representation of the overall cost incurred for acquiring the materials required for a project. In essence, if you know the cost of each individual unit and how many you will need, the formula provides a straightforward means of determining the total material expenditure. By multiplying these two figures together, you arrive at the total material cost, which is crucial for budgeting and financial planning in contracting work. Other options presented do not effectively capture the intention of calculating total material costs. For example, summing price per unit and the number of units would not yield a meaningful cost measure, while subtracting the number of units from the price per unit doesn’t relate to the total cost calculation. Similarly, multiplying by three without justification could lead to miscalculation and confusion regarding actual material needs.