Cost-Volume-Profit Analysis at Tesla

Values:

• Selling Price per Unit: $70,000
• Variable Cost per Unit: $50,000
• Fixed Costs: $6,000,000

Requirements:

1. Calculate the break-even point in units.
2. Determine the sales volume needed to achieve a profit of $1,500,000.
3. Analyze how changes in fixed costs impact the break-even point.