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Why does the cost per unit decrease so dramatically with larger quantities?

COST dramatically larger
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Why does the cost per unit decrease so dramatically with larger quantities?

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A. Whether your project involves manufacturing or recordable printing, the majority of costs are related to setup, film, master, proof and other related charges. Press setup can involve color matching, preparing screens, and several test CDs before production is started. Film is required for each color in your artwork and is relatively expensive to produce (particularly for high quality film). Generating a metal master for CD pressing is a time consuming and expensive process. Once the preliminary work is completed, every copy after the first one takes a fixed amount of time, effort and cost. Normally, the cost per unit after the first unit represents the labour and press time for your production method. Advances in machinery and process mean that the time per unit in making cds is steadily decreasing.

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