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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