Johnson & Johnson is assessing the costs of expanding its pharmaceutical manufacturing capacity. Fixed investment costs for new facilities are $2.5 billion, with variable production costs estimated at $50 million annually. Johnson & Johnson expects the expansion to generate $1.5 billion in additional annual revenue.

Requirements:

• Calculate the total investment and annual production costs for the manufacturing expansion.
• Determine the ROI and break-even production volume for the new facilities.
• Analyze the market demand and competitive landscape for pharmaceutical products.
• Discuss the strategic importance of expanding manufacturing capacity.
• Evaluate the financial impact of the expansion on Johnson & Johnson's financial statements.
• Recommend operational efficiencies and quality control measures for the new facilities.