What factors help reduce costs as volume increases?

buyer has placed an order with a supplier for 100 pieces at a per-unit price of $281 and has collected

the following cost data:

Material $100

Direct labor $50 (5 hours at $10 per hour)

Overhead $75 (150% of direct labor)

Total costs $225

Profit (25%) $56

Total per unit $281

The buyer now wants to place an order for an additional 700 pieces.