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Conduct a CVP analysis for Tesla's electric vehicle production, considering variable costs, fixed costs, and selling price. Tesla Model Selling Price per Unit ($) Variable
Conduct a CVP analysis for Tesla's electric vehicle production, considering variable costs, fixed costs, and selling price.
Tesla Model | Selling Price per Unit ($) | Variable Cost per Unit ($) | Fixed Costs ($) |
Model 3 | 40,000 | 30,000 | 1,000,000,000 |
Model S | 70,000 | 50,000 | 1,500,000,000 |
- Calculate Tesla's breakeven point in units and dollars for its Model 3 and Model S.
- Determine Tesla's margin of safety in sales revenue and units based on projected sales of 100,000 Model S units.
- Recommend pricing strategies to achieve a target profit margin of 25% for Tesla's Model S.
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