Unit costs impact on the profitability of products which collectively impacts of the profitability and financial sustainability of a business. If unit costs increase without a corresponding increase in selling prices, then the profitability of a product will diminish. Changes in unit costs directly impact the Gross Profit % of a business. Business managers need to constantly monitor the changes in unit costs and respond with increased selling prices otherwise the Gross Profit that the business achieves on that product will be reduced, impacting the overall profitability of the business.