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Tesla is assessing the costs of manufacturing a new electric vehicle model. Fixed production costs are $500 million, variable costs per vehicle are $30,000, and

Tesla is assessing the costs of manufacturing a new electric vehicle model. Fixed production costs are $500 million, variable costs per vehicle are $30,000, and Tesla plans to produce 50,000 vehicles. Additionally, battery costs are estimated at $10,000 per vehicle.

Requirements:

  • Calculate the total production and battery costs.
  • Determine the cost per vehicle.
  • Analyze the impact of manufacturing an additional 10,000 vehicles.
  • Discuss the significance of managing battery costs in EV production.
  • Recommend strategies for cost control in electric vehicle manufacturing.

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