1. Assume that Samsung manufactures and sells 60,000 units of a product at $11,000 per unit in domestic markets. It cost $6,000 per unit to manufacture ($4,000 variable cost per unit and $2,000 fixed cost per unit). Describe a situation under which the company is willing to sell an additional 8,000 units of the product in an international market at $5,000 per unit.
2. Apple is considering eliminating one of its stores in a large U.S. city. What are some of the factors that it should consider in making this decision?
3. Identify the incremental costs incurred by Apple for shipping one additional iPod from a warehouse to a retail store along with the store's normal order of 75 iPods.