1. Company: General Electric

Scenario: Heavy Machinery Manufacturing Cost Analysis

Data:

• Fixed Manufacturing Costs: $3,000,000
• Variable Manufacturing Costs per Unit: $15,000
• Units Produced: 100

Requirements:

1. Calculate the total manufacturing costs.
2. Determine the cost per unit.
3. Analyze the effect of producing 20 more units on total and per-unit costs.
4. Discuss the importance of understanding fixed and variable costs in production planning.
5. Recommend strategies to manage production costs effectively.
6. Evaluate the potential cost savings from adopting advanced manufacturing technologies.