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Evaluate the marginal cost of expanding Nestles bottled water production line. Cost Components Fixed Costs ($) Variable Costs per Unit ($) Production Volume (units) Bottled

Evaluate the marginal cost of expanding Nestle’s bottled water production line.

Cost Components

Fixed Costs ($)

Variable Costs per Unit ($)

Production Volume (units)

Bottled Water Production

1,500,000,000

0.10

10,000,000,000

Requirements:

Calculate the marginal cost per unit.

Determine the break-even point for the bottled water production line expansion.

Analyze how changes in production volume affect the marginal cost.

Provide recommendations for cost management in bottled water production.

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