Question: a . ( 6 ) Suppose An automaker faces fixed costs of approximately $ 4 0 0 million and variable costs of $ 4 5
a Suppose An automaker faces fixed costs of approximately $ million and variable costs of $ per vehicle. The company wants to ensure it can break even by selling at least vehicles. At what pricetocost 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 The firm is considering a $ 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 eg high vs low that would either justify or discourage the investment. Briefly explain your recommendation.
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