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Tesla and Ford are two leading automobile manufacturers with distinct approaches to electric vehicle (EV) production. Tesla focuses on high-end, premium electric vehicles, while Ford

Tesla and Ford are two leading automobile manufacturers with distinct approaches to electric vehicle (EV) production. Tesla focuses on high-end, premium electric vehicles, while Ford aims to produce affordable electric vehicles for the mass market.

Scenario: Tesla and Ford are developing electric SUV models, Model X and Model F, respectively. Both companies incur various costs during the development and production phases.

  • Tesla's Model X Costs:
    • Research and Development Expenses: $50 million
    • Manufacturing Setup Costs: $30 million
    • Marketing Expenses: $20 million
    • Total Units Produced: 10,000
  • Ford's Model F Costs:
    • Research and Development Expenses: $40 million
    • Manufacturing Setup Costs: $25 million
    • Marketing Expenses: $15 million
    • Total Units Produced: 15,000

Requirements:

  1. Calculate the total cost per unit for Tesla's Model X.
  2. Determine the total cost per unit for Ford's Model F.
Analyze the differences in cost structure and production volume between Tesla and Ford.

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