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Determine the marginal cost for Volkswagens electric vehicle production expansion. Cost Components Fixed Costs ($) Variable Costs per Unit ($) Production Volume (units) Electric Vehicle

Determine the marginal cost for Volkswagen’s electric vehicle production expansion.

Cost Components

Fixed Costs ($)

Variable Costs per Unit ($)

Production Volume (units)

Electric Vehicle Production

6,500,000,000

7,500

500,000

Requirements:

Calculate the marginal cost per unit.

Assess the impact of production volume changes on the marginal cost.

Determine the pricing strategy based on marginal cost analysis.

Provide recommendations for optimizing electric vehicle production costs.

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