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Answer Questions i-iv in excel Background: Elon Musk, the man who is responsible for revolutionizing the automotive space is confused. Why you ask? Well -
Answer Questions i-iv in excel
Background: Elon Musk, the man who is responsible for revolutionizing the automotive space is confused. Why you ask? Well - he met with Ms. Static who explained to him that under the current allocation system ergineering costs amount to $46,880 per Model S and $15,630 per Model X. Elon responds: "How -Look at the Model X -its freaking awesome and is insanely over engineered. How can it cost less than our base model?" He decides to hire you as a consultant to drive transparency into the costs. Problem: Develop ABC to clear the mess up... Cost Pool Activity Costs $360,000 Cost Driver Driver Machine Setup Materials Handling Setup Hours 4,000 $100,000 Materials (lbs) 20,000 Utili $40,000 Kw/hr 40,000 Information by Product Model S Model X Units 4,000 20,000 Direct Materials $42,000 554,000 Direct Labor $24,000 $40,000 240 3,000 200 Setup Hours Materials 1,000 2,000 4,000 Kw/Hr What is the "true" profitability of Model S and Model X ii, what/ how do you suspect Ms. Static arrived at her numbers? ii. Knowing Tesla's business-are there additional things that you would look into in cost allocation? (Remember: Tesla has significant costs related to battery, R&D, software programming, OAing etc.) iv. Should Tesla evaluate customer profitability analysis or product profitability analysis? Defend your choice with at least 2 advantagesStep by Step Solution
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