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So the total cost of production at 1,000 units will be calculated as: So from the above calculation, the Total Cost of Production for 1000 units will be: = $1,000 + $4 * 1,000 Now, at 1,000 units, it will be calculated as: = $5,000 / 1,000 Total Cost of Production for 1500 units = $1,000 + $4 * 1,500 So, for 15000 units it will be - $7,000 / 1,500 As this is the cost to produce 1,000 tables, the company has a per unit cost of $15.10 ($15,100 / 1,000 = $15.10). Period Costs Product costs are costs necessary to manufacture a product, while period costs are non-manufacturing costs that are expensed within an accounting period. 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