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Cost-Volume-Profit Analysis at General Motors Requirements: Conduct a cost-volume-profit (CVP) analysis for General Motors' electric vehicle division, considering fixed costs, variable costs, and sales price

Cost-Volume-Profit Analysis at General Motors

Requirements:

  1. Conduct a cost-volume-profit (CVP) analysis for General Motors' electric vehicle division, considering fixed costs, variable costs, and sales price per unit.

Cost Element

Amount ($)

Fixed Costs

120,000,000

Variable Costs per Unit

38,000

Sales Price per Unit

75,000

  1. Calculate the breakeven point in units and dollars.
  2. Analyze the impact of changes in sales volume on General Motors' profitability.
  3. Recommend strategies to achieve target profit levels under different market conditions.

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