L30 — Determining Best Buys
Key Terms
- unit price
- The cost per one unit of measurement (e.g. per gram, per litre, per item). Formula: Unit Price = Total Price ÷ Quantity.
- better buy
- The product with the lower unit price gives better value for money.
- rate
- A comparison of two quantities with different units, e.g. $3.20 per 400 g or $1.50 per litre.
Key Method
To compare products: calculate the unit price for each, then choose the lower one.
Unit Price = Total Price ÷ Quantity (make sure both are in the same unit first!)
Worked Example
Juice A: 1.5 L for $2.40 Juice B: 2 L for $3.20 Which is better value?
Step 1 — Juice A unit price: $2.40 ÷ 1.5 = $1.60 per litre
Step 2 — Juice B unit price: $3.20 ÷ 2 = $1.60 per litre
Step 3 — Compare: Both are the same price per litre — equal value.
What Is a Unit Price?
A unit price is the cost per single unit of measurement — per gram, per millilitre, per item, etc. It lets you compare products of different sizes on a fair basis.
Formula: Unit price = Total price ÷ Quantity
- A 500 g bag of rice for $2.50: unit price = $2.50 ÷ 500 = $0.005 per gram = 0.5 cents/g
- A 1.2 kg bag of rice for $5.40: unit price = $5.40 ÷ 1200 = $0.0045 per gram = 0.45 cents/g
The 1.2 kg bag has a lower unit price, so it is the better buy (if you need that much).
Comparing Unit Rates Step by Step
When comparing two products:
- Convert to the same unit (both in grams, both in mL, etc.).
- Calculate the unit price for each (price ÷ quantity).
- The lower unit price = better value.
Example: Juice A: 600 mL for $2.40. Juice B: 1.5 L for $5.25.
- Convert: Juice B = 1500 mL for $5.25
- Juice A: $2.40 ÷ 600 = $0.004/mL
- Juice B: $5.25 ÷ 1500 = $0.0035/mL
- Juice B is cheaper per mL → Juice B is better value
Bigger Is Not Always Better Value
Many people assume the bigger pack is always cheaper per unit, but this isn’t always true. The bigger pack might be:
- A premium brand (costs more even per gram)
- On special with a misleading “bulk deal”
- Not practical — if you can’t use it before it expires, it’s not a saving
Always calculate the unit price to be sure.
Expressing Unit Rates per 100 g
Unit rates can be expressed per 100 g or per 100 mL (this is how most supermarket shelf labels work):
- $2.80 for 200 g → price per 100 g = $2.80 ÷ 2 = $1.40 per 100 g
- $3.60 for 300 g → price per 100 g = $3.60 ÷ 3 = $1.20 per 100 g
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Calculate the unit price
- 400 g of chips for $3.20
- 2 L of milk for $3.00
- 5 kg of rice for $8.50
- 12 eggs for $4.80
- 3 kg of potatoes for $4.20
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Which is the better buy?
Calculate the unit price for each option and state which gives better value.
- 200 g for $1.60 or 300 g for $2.10
- 1.5 L for $2.25 or 2 L for $3.20
- 750 g for $4.50 or 1 kg for $5.80
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Chocolate Bars
A 250 g block of chocolate costs $4.50. A 400 g block costs $6.80. Which is better value per gram?
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Shampoo Comparison
Shampoo A: 500 mL for $7.50. Shampoo B: 750 mL for $10.50. Which has the lower unit price?
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Orange Juice
Brand X: 2 L for $3.80. Brand Y: 3 L for $5.40. Which is the better buy?
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Eggs: Singles vs Dozen
Eggs are sold individually at 60c each, or in a dozen for $6.60. Which option gives a better price per egg?
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Budget Shopping
You need 1 kg of flour. Option A: 500 g for $1.40. Option B: 1 kg for $2.50. Which should you buy? How much do you save?
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Coffee Pods
Pack A: 10 pods for $8.00. Pack B: 16 pods for $12.00. Pack C: 24 pods for $17.40. Rank from cheapest to most expensive per pod.
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Price Per 100 g
Cereal Brand X: 375 g for $5.25. Cereal Brand Y: 500 g for $6.50. Calculate the price per 100 g for each. Which is cheaper?
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Fair Price
If 600 g of pasta costs $2.40, what would be a fair price for a 1 kg packet at the same unit price?