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The per-unit cost of an item is its average total cost = (total cost/quantity). suppose that a new cell phone application costs $250,000 to develop and only $0.70 per unit to deliver to each cell phone customer. instructions: round your answers to 2 decimal places.
Total to develop = $250,000
Total per unit = $0.70
a. what will be the per-unit cost of the application if it sells 100 units?
If we are solving for 100 units first, take (0.70)(100) = $70, then we need to add the $70 to the cost of development which would make it $250,070
Finally ($257,070/100) = $2,500.70
b. what will be the per-unit cost of the application if it sells 1,000 units?
If we are solving for 1000 units first, take (0.70)(1000) = $700, then we need to add the $700 to the cost of development which would make it $250,700
Finally ($257,700/1000) = $257.70
c. what will be the per-unit cost of the application if it sells 1 million units?
If we are solving for 100 units first, take (0.70)(1,000,000) = $700,000, then we need to add the $700,000 to the cost of development which would make it $950,000.
Finally ($950,000/1,000,000) = $0.95
Total to develop = $250,000
Total per unit = $0.70
a. what will be the per-unit cost of the application if it sells 100 units?
If we are solving for 100 units first, take (0.70)(100) = $70, then we need to add the $70 to the cost of development which would make it $250,070
Finally ($257,070/100) = $2,500.70
b. what will be the per-unit cost of the application if it sells 1,000 units?
If we are solving for 1000 units first, take (0.70)(1000) = $700, then we need to add the $700 to the cost of development which would make it $250,700
Finally ($257,700/1000) = $257.70
c. what will be the per-unit cost of the application if it sells 1 million units?
If we are solving for 100 units first, take (0.70)(1,000,000) = $700,000, then we need to add the $700,000 to the cost of development which would make it $950,000.
Finally ($950,000/1,000,000) = $0.95
a. The per unit cost is $2,500.70
b. The per unit cost is $250.70
c. The per unit cost is $0.95
Per unit cost refers to the cost spent for producing one unit of the product being sold. Per unit cost is also called Average total cost
- The formulae for an Average total cost is ]Total cost / Quantity].
Given Information
A phone application costs $250,000 to develop
Its cost $0.70 per unit to deliver to each cell phone customer
a. The per-unit cost of the application if it sells 100 units will be:
Per unit cost = ($250,000 + 100*$0.7) / 100
Per unit cost = $250,070 / 100
Per unit cost = $2,500.70
b. The per-unit cost of the application if it sells 1000 units will be:
Per unit cost = ($250,000 + 1000*$0.7) / 1000
Per unit cost = $250,700 / 1000
Per unit cost = $250.70
c. The per-unit cost of the application if it sells 1 million units will be:
Per unit cost = ($250,000 + 1000000*$0.7) / 1000000
Per unit cost = $950,000 / 1000,000
Per unit cost = $0.95
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