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The unit price of the microcontroller is often a small part of the true cost because

  • A.the package cost is billed separately by the vendor
  • B.development, tools and certification dominate at low volume
  • C.distributors discount heavily on small quantities
  • D.the price of flash falls faster than that of logic

Answer: B

Ten thousand pounds of engineering time spread over a thousand units is ten pounds a unit, which dwarfs a two pound part. At a million units the arithmetic reverses entirely, which is why volume changes the whole character of the decision.

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