Pike Fitness manufactures motorised gym equipment. A member of the development team has suggested there is a market for a multifunctional product that has the facility to be used as a curved treadmill, elliptical trainer, and stationary bike. The average life cycle of Pike Fitness products is three years.

Initial calculations have identified that market research costs, which have already been incurred, are $$1$m$.$ The design and development of the product is $$600,000$ with additional investment in website design and equipment upgrades of $$5$m$.$ Over the three$-$year production period, a total of $$5$m will be incurred in manufacturing the units. At the end of year $3$ the cost of decommissioning machinery and labour redundancies will be $$2$m$.$ The marketing team estimate demand of $24,000$ units over its life cycle.

What is the life cycle cost per unit of the new product?