Pfizer is evaluating the costs of producing a new pharmaceutical drug. The fixed production costs are $80,000,000, and the variable costs are $10 per unit. Pfizer expects to produce 10,000,000 units in the first year. Additionally, regulatory approval costs are estimated to be $15,000,000.

Requirements:

• Calculate the total production and regulatory approval costs for the first year.
• Determine the cost per unit produced.
• Analyze the impact of producing an additional 2,000,000 units on total and per-unit costs.
• Discuss the importance of managing regulatory approval costs.
• Recommend strategies for optimizing pharmaceutical production.