Chapter 11, Problem 11.8IP

The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose a new cell phone application costs $115,000 to develop and only $0.75 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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Sam Enterprises has a return on equity of 14.8%. The debt-equity ratio is 52%, and the capital intensity ratio is 1.15. The company has current assets of $165,000. What is the profit margin?

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Financial Accounting Question

General Accounting

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