1. GM is evaluating the costs associated with launching a new electric vehicle (EV) model. Fixed development costs are estimated at $500 million, and variable costs per vehicle are $30,000. GM plans to produce 50,000 vehicles in the first year. Additionally, marketing costs are projected to be $50 million, and regulatory compliance costs are estimated at $20 million.

Requirements:

• Calculate the total production costs for the first year.
• Determine the cost per vehicle.
• Analyze the impact of producing an additional 10,000 vehicles beyond the initial plan.
• Discuss the strategic importance of marketing expenses in promoting the new EV model.
• Evaluate the regulatory compliance costs as a percentage of total development costs.
• Recommend strategies for optimizing cost efficiency in EV production.