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Fnr ? to Q 5 , the unit variable cost to make SD 7 2 1 is $ 1 0 0 , and the fixed

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Fnr ? to Q5, the unit variable cost to make SD 721 is $100, and the fixed cost is $5,000,000.
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(3) What is the unit cost (AKA cost per unit) if Elsa gets an order from Alphabet Inc. for
100,000 units?
Cost Per Unit =TotalFixedCost+TotalVariableCostTotalNumberoftheUnitsProduced
(4) What is the unit cost if Elsa instead gets an order from Numbers Inc. for 175,000 units?
(5) Anna Doors, CEO of Elsa, wanted to announce the use of cost-plus pricing in a press
conference, so she asked her assistant to calculate what the % markup would be if Elsa
made exactly enough phones to fulfill orders from Numbers Inc. and then sold them at
$175. Mr. Assistant moonlights as a student in a marketing class, so he knew how to
calculate the answer. What is the number that he came up with and how?
Markup price = unit cost desired return on sales
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