What is the formula for Usage Per Thousand (UPT)?

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Multiple Choice

What is the formula for Usage Per Thousand (UPT)?

Explanation:
Usage Per Thousand shows how many units are used for every thousand dollars of net sales. To get this, take the Usage (units) and divide by Net Sales (dollars) to get units per dollar, then multiply by 1000 to scale to per thousand. So the standard formula is (Usage ÷ Net Sales) × 1000. For example, if usage is 150 units and net sales are $3,000, UPT = (150 ÷ 3000) × 1000 = 50 units per thousand dollars. This form keeps the meaning clear—how much is used per thousand dollars of revenue—rather than reversing the ratio.

Usage Per Thousand shows how many units are used for every thousand dollars of net sales. To get this, take the Usage (units) and divide by Net Sales (dollars) to get units per dollar, then multiply by 1000 to scale to per thousand. So the standard formula is (Usage ÷ Net Sales) × 1000. For example, if usage is 150 units and net sales are $3,000, UPT = (150 ÷ 3000) × 1000 = 50 units per thousand dollars. This form keeps the meaning clear—how much is used per thousand dollars of revenue—rather than reversing the ratio.

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