What is the gross profit margin % ? Accounting Assume you have developed and tested a prototype electronic productand are about to start your new business. You purchase preprogrammedcomputer chips at $75 per unit. Other component costs include plasticcasings at $18 per unit and assembly hardware at $12 per unit.1. Calculate the total cost per unit for producing the electronic product.2. If you plan to sell the product at $140 per unit, what is the gross profitper unit?3. What is the gross profit margin percentage?

Step 1: Definition of Total Cost, Gross Profit, and Gross Profit MarginTotal Cost per Unit…

Answered: Assume you have developed and tested a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...

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The per-unit cost of an item is its average total cost (= total cost/quantity).Suppose a new cell phone application costs $100,000 to develop and only $.50 per unit to deliver to each cell phone customer. What will be the per-unit cost of the application if it sells 100 units? 1000 units? 1 million units?

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