  The per-unit cist of an item is its average total cost=(=total cost/quantity). Suppose that a new cell phone application costs \$100,000 to develop and only \$0.70 per unit to deliver to each cell phone customer.What will be the per-unit coat of the application if it sells 100 units?What will be the per-unit coat of the application if it sells 1,000 units?What will be the per-unit cost of the application if it sells 1 million units?

Question

The per-unit cist of an item is its average total cost=(=total cost/quantity). Suppose that a new cell phone application costs \$100,000 to develop and only \$0.70 per unit to deliver to each cell phone customer.

What will be the per-unit coat of the application if it sells 100 units?

What will be the per-unit coat of the application if it sells 1,000 units?

What will be the per-unit cost of the application if it sells 1 million units?

Step 1

a.)

Total cost:

Total cost can be calculated as follows:

Step 2

Per – unit cost:

Per – unit cost can be calculated as follows:

Step 3

b.)

Total cost:

Total cost can be calculated as f...

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