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Evaluate the marginal cost of expanding Nikes footwear production line. Cost Components Fixed Costs ($) Variable Costs per Unit ($) Production Volume (units) Footwear Production
Evaluate the marginal cost of expanding Nike’s footwear production line.
Cost Components | Fixed Costs ($) | Variable Costs per Unit ($) | Production Volume (units) |
Footwear Production | 1,500,000,000 | 25 | 100,000,000 |
Requirements:
Calculate the marginal cost per unit.
Analyze how changes in production volume affect the marginal cost.
Determine the break-even point for the footwear production line expansion.
Provide recommendations for cost management in footwear production.
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