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QUESTION
The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $200,000 to develop...
The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $200,000 to develop and only $0.50 per unit to deliver to each cell phone customer.
Instructions: Round your answers to 2 decimal places.
a. What will be the per-unit cost of the application if it sells 100 units?
b. What will be the per-unit cost of the application if it sells 1,000 units?
c. What will be the per-unit cost of the application if it sells 1 million units?
