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1. CellCo wishes to liquidate its inventory of older cell phones. The phones cost $50 and sold for $120. CellCo will incur costs of $10 per phone to store them until they are sold and to advertise that they are on sale. Calculate the minimum price per unit the company should accept.
2. Ellipsis Manufacturing produces goods costing $12 per unit in variable costs and $20 per unit in fixed costs that sell for $45 each. Another firm has asked if Ellipsis will make a special production run to manufacture 3,000 units for them in a one-time-only special order. Ellipsis has the manufacturing capacity to fill the special order without giving up any regular sales. Calculate the minimum price per unit that the company should accept.
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