Calculate the minimum price per unit that the company should accept. – Essaylink

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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.

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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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