Vehicle Production Cost Analysis

Data:

• Fixed Manufacturing Costs: $18,000,000
• Variable Manufacturing Costs per Vehicle: $25,000
• Vehicles Produced: 2,000
• Warranty Costs per Vehicle: $1,500

Requirements:

1. Calculate the total manufacturing costs, including warranty costs.
2. Determine the cost per vehicle.
3. Analyze the effect of producing 500 more vehicles on total and per-vehicle costs.
4. Discuss the importance of managing warranty costs.
5. Recommend strategies for optimizing vehicle production efficiency.
6. Evaluate the potential cost savings from implementing robotic automation.
7. Assess the impact of cost control measures on the company's product quality and customer satisfaction.