Auto Parts Manufacturing Cost Analysis

Data:

• Fixed Manufacturing Costs: $2,500,000
• Variable Manufacturing Costs per Part: $55
• Parts Produced: 60,000
• Additional Production Costs: $300,000

Requirements:

1. Calculate the total manufacturing costs, including additional production costs.
2. Determine the cost per part.
3. Analyze the effect of producing 10,000 more parts on total and per-part costs.
4. Discuss the impact of fluctuating raw material prices on cost control.
5. Recommend strategies for managing production costs.
6. Evaluate the potential cost savings from implementing automated production lines.
7. Assess the impact of cost control measures on the company's profitability.