hello, I need help with question #2. Unfortunately I am only allows to add one image.

PRODUCTION AND COST ANALYSIS 246 can understand the need for rapid action. It makes aims to produce savings of about $1 billion lift gay people act outside their specific areas. In most hopes to cut costs at Nissan's British plant, areas companies people make a specific contribution to Europe's most efficient, by 309%, but thinks more yes the company in their function,' he says. 'But it is not is inevitable. expressed in terms of profit, only in terms of performing their function better.' Instead Mr Ghosn, who meets all the teams monthly, gets them to focus Questions on profit creation, which he reckons lies in the Assume: interstices of different company functions. 'Profit is the most global aspect of a business, and it is cross- a. The second phase of the Ghosn plan does not functional' come into effect until after the year 2000. The first product of the teams helped to form the b. The target operating profit for 2000 is 100 Slim basis of the Nissan revival plan unveiled last October. yen. In the land of lifetime employment (at least for many C. Nissan earns 70 per cent of its revenues from workers in big companies), Mr Ghosn shocked Japan vehicle sales and that other operations break emm by announcing the closure of five factories and will do the same in 2000. employing over 16,000 people in Japan alone, d. Average prices of vehicles sold are kept at the cutting capacity by 30% to bring it more into line same level as 1999. with sales and boosting utilisation rates to around e. Taxes are not included in the figures given the 80% rate. Already machinery is being moved out of the doomed plants into those that will survive, and some 1 Calculate the average price of vehicles sold. workers have been transferred. Strong demand in the 2 Calculate average variable costs for 1999 and the American market (and to a lesser extent in Europe) target for 2000. means that production is actually running about 10% 3 Calculate the size of the overall Japanese vehide higher than last year, so extra labour is needed in market in 1999. some other Japanese factories. Mr Ghosn hopes to 4 If Nissan can reduce its variable costs in vehicle avoid actually sacking workers, which is expensive in production by 5 per cent in 2000 compared with its Japan. The second phase of his plan - to rationalise target, estimate the effect on profit and retum on the Nissan and Renault distribution and dealer sales. networks in Europe - has just been announced, and Explain any assumptions in the above analysis