Question
Analyze the marginal cost for Tesla's battery production line expansion. Cost Components Fixed Costs ($) Variable Costs per Unit ($) Production Volume (units) Battery Production
Analyze the marginal cost for Tesla's battery production line expansion.
Cost Components | Fixed Costs ($) | Variable Costs per Unit ($) | Production Volume (units) |
Battery Production | 1,000,000,000 | 300 | 3,000,000 |
Requirements:
Calculate the marginal cost per unit.
Assess how changes in production volume affect the marginal cost.
Determine the pricing strategy based on marginal cost analysis.
Provide recommendations to optimize production and reduce marginal costs.
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
