Medical Device Production Cost Analysis

Data:

• Fixed Manufacturing Costs: $6,000,000
• Variable Manufacturing Costs per Device: $500
• Devices Produced: 50,000
• Quality Assurance Costs: $1,500,000

Requirements:

1. Calculate the total manufacturing costs, including quality assurance costs.
2. Determine the cost per device.
3. Analyze the effect of producing 10,000 more devices on total and per-device costs.
4. Discuss the importance of managing quality assurance costs.
5. Recommend strategies for optimizing medical device production.
6. Evaluate the potential cost savings from using advanced manufacturing technologies.
7. Assess the impact of cost control measures on the company's product quality and market share.