Question: a . ( 6 ) Suppose An automaker faces fixed costs of approximately $ 4 0 0 million and variable costs of $ 4 5

a.(6) Suppose An automaker faces fixed costs of approximately $400 million and variable costs of $45,000 per vehicle. The company wants to ensure it can break even by selling at least 30,000 vehicles. At what price-to-cost margin would this breakeven target be met? Estimate a reasonable price range that would allow the firm to reach breakeven and explain your reasoning clearly.(Note: There is no single correct answershow your process.) b.(6) The firm is considering a $20 million marketing investment. Executives are weighing two options: A smaller increase in sales at a higher price A larger increase in sales at a lower price Create a hypothetical scenario for each price point (e.g., high vs. low) that would either justify or discourage the investment. Briefly explain your recommendation.

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