PRACTICE PROBLEM Samsung has decided to manufacture a special edition cell phone called HiRide for the teen market next year that will be sold only with T-Mobile's wireless service. Let's assume that for this design Samsung's manufacturing costs are $31 per phone, their fixed manufacturing costs are about $ 2000000 and their advertising and promotional costs are expected to be about $ 1000000 Samsung will make this phone exclusive to T-Mobile, who will feature it in their retail stores for sale to their customers.

T-Mobile plans to charge $110 for this model, and Samsung will sell it to them for $90. Samsung salespeople earn a 10% commission on every unit they sell to a retailer.[Be sure to show all work! Partial credit may be given.ja) What is Samsung's unit contribution on the HiRide?b) What are Samsung's total fixed costs?c) What is Samsung's break even volume in units?d) What is T-Mobile's margin percentage?e) If Samsung winds up selling 80.000 units, how much profit will they earn? Keep in mind that profit is the difference between total revenues and total costs.