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