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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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