Question - Nokia has recently released its new phone the Lumia 900. Nokia has determined that their direct labor costs are $50 per unit. It will have direct materials costs of approximately $200 per unit. The company has also incurred research and development costs of approximately $100 million. And due to the extensive marketing campaign, the company will have incurred advertising costs of approximately $49 million. Nokia has no other costs associated with this line of phones. Nokia is planning to sell the phone for $450 per unit.
How many units of Lumia 900 phones must Nokia sell to earn a $1 million profit?
A) 700,000 units
B) 750,000 units
C) 800,000 units
D) 825,000 units