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Help Seave & ExitSubmit Chack my work 10 The per unit cost of an ters is its ave

ID: 1136544 • Letter: H

Question

Help Seave & ExitSubmit Chack my work 10 The per unit cost of an ters is its average total cost sotal cosiquantity) Suppose that a new cell phone application costs $100,000 to develop and only $0.50 per unit to deliver to each cel phone custoener Instructions: Round your answers to 2 decimal places a What wil be the per unit cost of the application if a sels 100 units? b. What will be the per unt cost of the application f it sels 1000 units? 100 50 C What well be the pes unit cost of the application if t sells 1 milion units?

Explanation / Answer

1)

Average or per unit cost = TC /Q

= 100, 000 /100 + 0.35

= 1,000 + 0.35

= 1000.35

2)

= 100, 000 /1000 + 0.35

= 1,00+ 0.35

= 100.35

3)

= 100, 000 /1,000,000 + 0.35

= 0.1+ 0.35

= 0.45