What is a per-unit analysis used for?

A per-unit analysis is widely utilized to compare income and expenses based on a unit of measurement, which in this context refers to a car. By breaking down financial data on a per-car basis, organizations can gain insights into the profitability, efficiency, and performance of individual units within their fleet. This form of analysis allows for more precise financial planning and decision-making, as it highlights how each vehicle contributes to overall income and expenses.

For instance, if a company operates a fleet and wants to assess how much profit each car generates after covering its specific expenses, they can use per-unit analysis to arrive at these insights. This method allows for easy comparisons across the entire fleet, facilitating targeted improvements and resource allocation.

Understanding other options reveals why they do not align with the concept of per-unit analysis as effectively. Evaluating only repair costs does not encompass a full view of income and expenses. Calculating total fleet size focuses on quantity rather than financial metrics per unit. Analyzing employee performance metrics is unrelated to the financial aspects of vehicle operations that per-unit analysis targets. Hence, the correct application of per-unit analysis is best captured by comparing income and expenses on a per car basis.