Question: P&G is evaluating the costs associated with expanding its global manufacturing footprint. Fixed expansion costs are $800 million, and variable production costs per unit are

P&G is evaluating the costs associated with expanding its global manufacturing footprint. Fixed expansion costs are $800 million, and variable production costs per unit are $5. P&G plans to produce 100 million units in the first year. Additionally, supply chain logistics costs are estimated at $200 million, and marketing expenses are expected to reach $150 million.

Requirements:

  • Calculate the total expansion and logistics costs.
  • Determine the cost per unit of production.
  • Analyze the impact of producing an additional 20 million units beyond the initial plan.
  • Discuss the strategic role of supply chain and logistics in global expansion.
  • Evaluate the total cost of expanding P&G's manufacturing footprint.
  • Recommend strategies for cost-effective global manufacturing and marketing.

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