Personal Care Products Cost Management

Data:

• Monthly Fixed Costs: $4,000,000
• Variable Costs per Unit: $0.80
• Units Produced: 5,000,000
• Packaging Costs per Unit: $0.20

Requirements:

1. Calculate the total monthly costs, including packaging costs.
2. Determine the cost per unit.
3. Analyze the impact of producing 1,000,000 additional units on total and per-unit costs.
4. Discuss the importance of managing packaging costs.
5. Recommend strategies for optimizing personal care product production.
6. Evaluate the potential cost savings from using eco-friendly packaging materials.
7. Assess the impact of cost control measures on the company's environmental footprint and market competitiveness.