How much is the unit price per DVD?

Question

A DVD shop in Maine can produce 30 DVDs for $4. The factory cost $90,000 to build. If they make 1 million DVDs.

Answer 1

30 cost $4. fixed cost = 90,000

they make 1 million

per unit cost =?

C = VC +FC = 4q + 90000

per unit Cost = C/q = 4 + 90,000/1 mill

= 4 + 90,000/1,000,000

= 4 +90/1000

= 4 + 9/100

= 4 + .09

= $4.09