Google’s Fitbit division makes fitness trackers. Assume the following data from Google.

1. Compute cost per unit for 

(a) A noncustom (standard) fitness tracker and 

(b) A custom tracker with a company logo.

2. Assume Google marks up its fitness trackers by 40%. Compute the selling price per unit for each type of fitness tracker.

3. Assume Google wants its standard fitness tracker to compete with the entry level Apple Watch. Assume the entry level Apple Watch sells for $200 per unit. Is Google’s selling price for its noncustom (standard) fitness tracker lower than $200 per unit for the Apple Watch?

Transcribed Image Text:

Cost per Tracker Cost per Tracker Assembly process costs Custom option Direct materials . $ 80 Company logo $30 ..... Conversion.... 60