Please upload Excel worksheet. Additional 2 marks are allocated for clear Excel presentation.
Tesla, a US car manufacturer, has a Chinese subsidiary "Shanghai Tesla Super factory" that manufactures and sells electric cars in China. a. The main input is priced in USD (USD 10,000/ unit) b. All other costs are in CNY (Fixed cost =CNY500 million, Variable cost =CNY50,000/ unit) c. Depreciation = CNY 1 million d. S0=CNY6.5/USD e. Expects to sell 10,000 cars this year at CNY300,000 each. f. Tax rate =30%; assuming tax credits are available for immediate use if losses occur spreadsheet in the next file response question. (Hint: you may use the goal seek and/or solver functions in Excel). a. What are the operating cash flows in CNY? 2 marks) What are the operating cash flows in USD? (2 marks) b. How many units does Tesla need to sell to break even in operating cash flows in dollars? (2 marks) c. What are the operating cash flows in dollars now? (2 marks) (2 marks) i. The selling price cannot increase by more than 20% from the original selling price; ii. The variable unit cost in CNY (not including the main input) can only be between 90% and 110% of the original cost; iii. Units sold will reduce at the same rate as the selling price increases. For example, units sold will reduce by 10% if the selling price increases by 10%. Please fill out the values of the following three variables that would maximise Tesla's operating cash flows in USD. Tesla, a US car manufacturer, has a Chinese subsidiary "Shanghai Tesla Super factory" that manufactures and sells electric cars in China. a. The main input is priced in USD (USD 10,000/ unit) b. All other costs are in CNY (Fixed cost =CNY500 million, Variable cost =CNY50,000/ unit) c. Depreciation = CNY 1 million d. S0=CNY6.5/USD e. Expects to sell 10,000 cars this year at CNY300,000 each. f. Tax rate =30%; assuming tax credits are available for immediate use if losses occur spreadsheet in the next file response question. (Hint: you may use the goal seek and/or solver functions in Excel). a. What are the operating cash flows in CNY? 2 marks) What are the operating cash flows in USD? (2 marks) b. How many units does Tesla need to sell to break even in operating cash flows in dollars? (2 marks) c. What are the operating cash flows in dollars now? (2 marks) (2 marks) i. The selling price cannot increase by more than 20% from the original selling price; ii. The variable unit cost in CNY (not including the main input) can only be between 90% and 110% of the original cost; iii. Units sold will reduce at the same rate as the selling price increases. For example, units sold will reduce by 10% if the selling price increases by 10%. Please fill out the values of the following three variables that would maximise Tesla's operating cash flows in USD
