Selling price Variable cost per unit of compact discs and user manuals Development cost per unit Marketing and administrative cost per unit Total cost per unit Operating income per unit Easyspread 1.0 Easyspread 2.0 $ 180 $ 225 36 42 80 130 39 61 155 233 $ 25 $ -8 Development cost per unit for each product equals the total costs of developing the software product divided by the anticipated unit sales over the life of the product. Marketing and administrative costs are fixed costs in 2013, incurred to support all marketing and administrative activities of Abode Software. Marketing and administrative costs are allocated to products on the basis of the budgeted revenues of each product. The preceding unit costs assume Easyspread 2.0 will be introduced on October 1, 2013