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Evaluate the marginal cost of expanding IBM's cloud computing services. Cost Components Fixed Costs ($) Variable Costs per Unit ($) Production Volume (units) Cloud Computing
Evaluate the marginal cost of expanding IBM's cloud computing services.
Cost Components | Fixed Costs ($) | Variable Costs per Unit ($) | Production Volume (units) |
Cloud Computing Services | 2,800,000,000 | 2 | 1,000,000,000 |
Requirements:
Calculate the marginal cost per unit.
Determine the break-even point for the cloud computing services expansion.
Analyze how changes in production volume affect the marginal cost.
Provide recommendations for optimizing cloud computing services costs.
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