s Questions Assume: a. The second phase of the Ghosn plan does not b. The target operating profit for 2000 is 100 billiorn come into effect until after the year 2000 yen. c. Nissan earns 70 per cent of its revenues from vehicle sales and that other operations break even and will do the same in 2000. d. Average prices of vehicles sold are kept at the same level as 1999. Taxes are not included in the figures given. 1 Calculate the average price of vehicles sold. 2 Calculate average variable costs for 1999 and the 3 Calculate the size of the overall Japanese vehicle 4 If Nissan can reduce its variable costs in vehicle target, estimate the effect on profit and return orn target for 2000. market in 1999. production by 5 per cent in 2000 compared with its sales Explain any assumptions in the above analysis