Parameter, Acme1 Design Life Fixed Cost Investment Price Elasticity Target ROI Metric Markup Percentage 20% Unit Sales 1 year Variable Cost $20,000 $30,000 Replacement Labor $60 1.00 20% 5000/year $30 Description Lifespan before unit needs to be replaced Overhead costs not changing with quantity produced Money invested for development of Battery1 Desired return on sales Price elasticity of demand Cost of labor to replace battery in smartphone Target return on investment for new projects Quantity of units forecast to sell Labor and material costs to produce each unit
Parameter, Acme1 Design Life Fixed Cost Investment Price Elasticity Target ROI Metric Markup Percentage 20% Unit Sales 1 year Variable Cost $20,000 $30,000 Replacement Labor $60 1.00 20% 5000/year $30 Description Lifespan before unit needs to be replaced Overhead costs not changing with quantity produced Money invested for development of Battery1 Desired return on sales Price elasticity of demand Cost of labor to replace battery in smartphone Target return on investment for new projects Quantity of units forecast to sell Labor and material costs to produce each unit
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
What is the unit cost for the Acme1 battery? HINT: Calculate unit cost as variable cost + allocated fixed cost
$34
$42.50
$30
$35.20
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