Electric Vehicle Production Cost Analysis

Data:

• Fixed Manufacturing Costs: $30,000,000
• Variable Manufacturing Costs per Vehicle: $40,000
• Vehicles Produced: 5,000
• Battery Costs per Vehicle: $10,000

Requirements:

1. Calculate the total manufacturing costs, including battery costs.
2. Determine the cost per vehicle.
3. Analyze the effect of producing 1,000 more vehicles on total and per-vehicle costs.
4. Discuss the importance of managing battery costs.
5. Recommend strategies for optimizing electric vehicle production.
6. Evaluate the potential cost savings from implementing renewable energy sources.
7. Assess the impact of cost control measures on the company's environmental goals and market competitiveness.