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

Cost-Volume-Profit Analysis at Tesla Inc.

Requirements:

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

Cost Element

Amount ($)

Fixed Costs

150,000,000

Variable Costs per Unit

35,000

Sales Price per Unit

80,000

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

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