Answer:
$1
Explanation:
To find the unit cost per DVD, you need to calculate the total cost of producing 1 million DVDs and divide that by the number of DVDs produced.
First, you need to find the cost of producing 1 DVD. You can do this by dividing the cost of building the factory by the number of DVDs produced per dollar spent on the factory:
cost of 1 DVD = $80,000 / (20 DVDs/$3) = $1
Then, you can multiply this cost by the number of DVDs produced to find the total cost of producing 1 million DVDs:
total cost = (cost of 1 DVD) * (number of DVDs) = $1/DVD * 1,000,000 DVDs = $1,000,000
Finally, you can divide the total cost by the number of DVDs produced to find the unit cost per DVD:
unit cost per DVD = total cost / number of DVDs = $1,000,000 / 1,000,000 DVDs = $1/DVD.
So, the unit cost of producing 1 DVD is $1.