What will be the per-unit cost of the application

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Reference no: EM13214360

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 $0.5 per unit to deliver to each cell phone customer.

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

What will be the per-unit cost of the application if it sells 1000 units?

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

Reference no: EM13214360

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