Look at this price label for a 15 oz box of Cheerioscereal. The retail price for the cereal—the price you and Ipay in the grocery store—is $3.95. Note also that the storeis required to provide a unit price for the cereal. The unit priceis 0.263 cents per ounce. You can see for yourself where thatunit price comes from:

$3.95 / 15 oz. = $ 0.263

Try it in your calculator for yourself! The good news is,you don’t need to carry a calculator to the grocery store and dothis math for yourself—NY State law requires the store to labeltheir prices this way. Every product in the product category (inthis case, cereal) is required to be priced on a common basis (inthis case, per ounce), so that consumers can make easy comparisonsacross different brands and sizes that are offered. If you look atunit prices, you can determine which product is the most costeffective.

Now imagine that this grocery store also has a 28 oz box ofCheerios with a retail price of $6.95.

1. What is the unit price for this box of Cheerios?
   
   
2. Which size—the 15 oz. or the 28 oz.—is the better value forconsumers? In other words, which box is cheaper on aper-ounce basis?
   
   
3. The grocery store has a store brand called O’Cheeries! Itis sold in a 10 oz box at a retail price of $2.99. If youdon’t care about brand name, and are going to make your decisiontotally on the best value for your money, which option should youchoose:
   10 oz O’Cheeries, 15 oz Cheerios, or 28 oz Cheerios?