Average Selling Price (ASP)

Average Selling Price (ASP) refers to the average price at which a product or service is sold over a specific period of time. It is calculated by dividing the total Revenue generated from sales by the total number of units sold. ASP is commonly used in various industries to analyze pricing strategies, market trends, and overall sales performance.

For example, if a company sells 100 units of a product for a total Revenue of $10,000, the ASP would be:

ASP = Total Revenue / Total Units Sold = $10,000 / 100 = $100

In a case where a technology company sells three models of a gadget: 50 units at $200 each, 30 units at $300 each, and 20 units at $400 each, the ASP would be calculated as follows:

Total Revenue = (50 * 200) + (30 * 300) + (20 * 400) = $10,000 + $9,000 + $8,000 = $27,000

Total Units Sold = 50 + 30 + 20 = 100

ASP = Total Revenue / Total Units Sold = $27,000 / 100 = $270