Ford Motor Company is analyzing its production costs using different costing approaches:

• Requirements:
  • Calculate the Marginal Cost per additional vehicle produced:
    • Variable Costs: $15,000
    • Fixed Costs: $10,000,000
• Apply Standard Cost Accounting to establish cost targets for vehicle components.
• Evaluate the benefits of Activity-Based Costing in allocating assembly line costs.
• Discuss how each costing method influences pricing strategies and profitability in automotive manufacturing.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$15,000
Fixed Costs	$10,000,000
Total Cost	$10,015,000