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Cost-Volume-Profit Analysis at Tesla Values: Selling Price per Unit: $50,000 Variable Cost per Unit: $30,000 Fixed Costs: $1,000,000 Requirements: Calculate the breakeven point in units

Cost-Volume-Profit Analysis at Tesla

    • Values:
      • Selling Price per Unit: $50,000
      • Variable Cost per Unit: $30,000
      • Fixed Costs: $1,000,000
    • Requirements:
      1. Calculate the breakeven point in units for Tesla's new model.
      2. Determine the sales revenue required to achieve a target profit of $500,000.
      3. Discuss the limitations of CVP analysis in a dynamic business environment.
      4. Recommend pricing strategies for Tesla to maximize profitability.

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