General Motors (GM) is assessing the costs associated with launching a new electric vehicle (EV) model. Fixed development costs are $500 million, and variable production costs per unit are $20,000. GM plans to produce 50,000 units in the first year, with expected annual revenue of $2.5 billion.

Requirements:

• Calculate the total development and production costs for the new EV model.
• Determine the cost per unit and the gross profit margin.
• Analyze the break-even point in units and revenue.
• Discuss the strategic importance of EVs in GM's sustainability goals.
• Evaluate the financial impact of the new EV model on GM's balance sheet.
• Recommend distribution and sales strategies to maximize market penetration and profitability.