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Below you will find information from Tesla, Inc. management and the work the accountant has done. Please answer the following questions for each of the
Below you will find information from Tesla, Inc. management and the work the accountant has done. Please answer the following questions for each of the two situations: 1. Is the accountant's calculations and recommendations to management, correct? 2. If not, what should the calculations and recommendations be? You can download this project and add your answers to this Word document, or you can write your answers in a separate Word document. Please submit your answers in the Module on Canvas. Please make sure you include and show your calculations for full credit! Management for Tesla, Inc. is trying to increase profit. They have information they would like from the accountant. First, they realize it is impossible to produce enough of their products to meet demand. They would like to know which product makes the highest contribution margin. Second, they are thinking about expanding a few of their products instead of producing and selling them as parts. A. The constraint at Tesla, Inc. is an expensive piece of machinery. The three products listed below use this constrained resource. Management has asked the accountant to rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. The accountant made the following calculations: The accountant recommends concentrating on product B2, then C3, then A1
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