In 2013, the manufacturing capacity is 500/day, the fixed cost is 13000/car, the material and handling cost per car is 5000/car, estimated sales price is 21000/car.

In 2019, approximately 200 people are remaining in the business to support a network of authorised Holden Service Outlets across Australia to service and repair vehicles for Holden customers, the salary per person per year is $51266. And the facility or other fixed cost would be $700/person.

Holdens analysis, based on data provided by dealers, showed average profit to be $351 per vehicle over the period 2017-2019. Holdens compensation offers of $1,500 per vehicle is over four times that amount. In 2019, on average Holdens Australian dealers made a loss of $600 on each new car sale. With the Transition Support Program (TSP) offering $1,500 cash per lost sale through to the end of 2022 this represents an increased payout of $2,100 per vehicle sale, based on 2019 sales and locked in for 2.5 years.

1. Describe fixed cost, variable cost, marginal cost, sunk cost and opportunity cost for the car manufacturing plant. Please find thesolution to how many cars that holden had to produce each dayin 2013 to breakeven? Prepare a breakeven chart.

2. Draw a life cycle diagram for the small-car production plant that GM Holden Ltd opened in 2010. Can you describe the environmental cost of final disposal?

3. How many cars did GM Holden Ltd need to sell daily in 2019?