- 3.6 Based on the above points, prepare a set of recommendations for the best costing system that can more accurately determine the cost of the company products.
- 3.7 Prepare a set of recommendations for the pricing policy that can help the company be more competitive in its market
31-Dec-19 19,952 869 20,821 1531 2,226 24,578 STATEMENT OF OPERATIONS (Unaudited) In millions of USD or shares as applicable, except per share data REVENUES Automotive sales Automotive leasing Total automotive revenue Energy generation and storage Services and other Total revenues COST OF REVENUES Automotive sales Automotive leasing Total automotive cost of revenues Energy generation and storage Services and other Total cost of revenues Gross profit OPERATING EXPENSES Research and development Selling, general and administrative Restructuring and other Total operating expenses INCOME (LOSS) FROM OPERATIONS Interest income Interest expense Other (expense) income, net INCOME (LOSS) BEFORE INCOME TAXES Provision for income taxes NET INCOME (LOSS) Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS Net income (loss) per share of common stock attributable to common stockholders Basic Diluted Weighted average shares used in computing net income (loss) per share of common stock Basic Diluted 15,939 459 16,398 1341 2,770 20,509 4,069 1343 2,646 149 4,138 (69) 44 (685) 45 (665) 110 (775) 87 (862) (4.92) (4.92) 177 177 3.2 Tesla is an American electric vehicle and clean energy company based in California founded in 2003 by Elon Musk and the name tesla stands for Tera electron volt energy superconducting linear accelerator. Tesla's mission is to help the world transition to sustainable energy to help our planet. In addition to their impressive cars they also manufacture unique set of energy solutions like Powerwall, powerpack and solar roofs which helps regular people like us to consume and store renewable clean energy but their main products are in the automobile industry and more specifically electric luxury cars. Their main target audience is upper middle-class Americans that are more or less wealthy hence the high prices of their vehicles, but lately they also started targeting Chinese and European markets since they're extremely lucrative as the Dutch customers on their own contributed 1.6 billion US dollars to their 2019 revenue. 3.3 Tesla sells standard cars, They have several car models like the S, 3, X, and the Y along with the accessories necessary for each car like the chargers and such. 3.4 Tesla is machine intensive, since 2015 they've relied on robots that can lift and maneuver entire cars with great precision and extra carefully all while taking up less room and also according to Tesla's website those robots will soon in the near future be able to do the most crucial part of producing their cars which is installing the battery packs which will reduce the installation time from 4 minutes to only two minutes which will allow them to produce cars faster and will in addition allow them to produce more cars which is their goal and also will allow them to replace human workers with robots or even eliminate humans completely. 3.5 1)Direct material=7,000 2)Direct Labor=10,000 Research and development 3) Manufacturing overheads=3,509 Selling general and administrative Energy generation and storage Automotive sales Restructuring and other Automotive leasing 1) Tesla is known for their high-end expensive materials and batteries. Tesla is considered one of the safest cars in the world, 98% of the Tesla Model S body is constructed from aluminium which is five times more expensive than steel. 2) Tesla pays their employees about 10$/h because their factory is in Fremont, California, which in the US they pay their employees well, they also have benefits from the job so, Tesla spends good amount of money on the direct labor. 3) as mentioned before, Tesla has good wages and salaries and they are known to have expensive advertising strategies so they have average manufacturing overheads 31-Dec-19 19,952 869 20,821 1531 2,226 24,578 STATEMENT OF OPERATIONS (Unaudited) In millions of USD or shares as applicable, except per share data REVENUES Automotive sales Automotive leasing Total automotive revenue Energy generation and storage Services and other Total revenues COST OF REVENUES Automotive sales Automotive leasing Total automotive cost of revenues Energy generation and storage Services and other Total cost of revenues Gross profit OPERATING EXPENSES Research and development Selling, general and administrative Restructuring and other Total operating expenses INCOME (LOSS) FROM OPERATIONS Interest income Interest expense Other (expense) income, net INCOME (LOSS) BEFORE INCOME TAXES Provision for income taxes NET INCOME (LOSS) Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS Net income (loss) per share of common stock attributable to common stockholders Basic Diluted Weighted average shares used in computing net income (loss) per share of common stock Basic Diluted 15,939 459 16,398 1341 2,770 20,509 4,069 1343 2,646 149 4,138 (69) 44 (685) 45 (665) 110 (775) 87 (862) (4.92) (4.92) 177 177 3.2 Tesla is an American electric vehicle and clean energy company based in California founded in 2003 by Elon Musk and the name tesla stands for Tera electron volt energy superconducting linear accelerator. Tesla's mission is to help the world transition to sustainable energy to help our planet. In addition to their impressive cars they also manufacture unique set of energy solutions like Powerwall, powerpack and solar roofs which helps regular people like us to consume and store renewable clean energy but their main products are in the automobile industry and more specifically electric luxury cars. Their main target audience is upper middle-class Americans that are more or less wealthy hence the high prices of their vehicles, but lately they also started targeting Chinese and European markets since they're extremely lucrative as the Dutch customers on their own contributed 1.6 billion US dollars to their 2019 revenue. 3.3 Tesla sells standard cars, They have several car models like the S, 3, X, and the Y along with the accessories necessary for each car like the chargers and such. 3.4 Tesla is machine intensive, since 2015 they've relied on robots that can lift and maneuver entire cars with great precision and extra carefully all while taking up less room and also according to Tesla's website those robots will soon in the near future be able to do the most crucial part of producing their cars which is installing the battery packs which will reduce the installation time from 4 minutes to only two minutes which will allow them to produce cars faster and will in addition allow them to produce more cars which is their goal and also will allow them to replace human workers with robots or even eliminate humans completely. 3.5 1)Direct material=7,000 2)Direct Labor=10,000 Research and development 3) Manufacturing overheads=3,509 Selling general and administrative Energy generation and storage Automotive sales Restructuring and other Automotive leasing 1) Tesla is known for their high-end expensive materials and batteries. Tesla is considered one of the safest cars in the world, 98% of the Tesla Model S body is constructed from aluminium which is five times more expensive than steel. 2) Tesla pays their employees about 10$/h because their factory is in Fremont, California, which in the US they pay their employees well, they also have benefits from the job so, Tesla spends good amount of money on the direct labor. 3) as mentioned before, Tesla has good wages and salaries and they are known to have expensive advertising strategies so they have average manufacturing overheads
