Marginal Cost Analysis at Tesla

• Values:
  • Fixed Costs: $60,000,000
  • Variable Costs per Car: $30,000
  • Number of Cars Sold: 100,000
  • Average Revenue per Car: $50,000
• Requirements:

1. Calculate the marginal cost per car for Tesla.
2. Determine the contribution margin per car.
3. Discuss the implications of marginal cost analysis for pricing decisions.
4. Recommend strategies to increase profitability based on marginal cost insights.