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Tesla has been successful with its model M1, but is planning to expand its line of products with a new Model J1. Tesla sells the
Tesla has been successful with its model M1, but is planning to expand its line of products with a new Model J1. Tesla sells the M1 for $70,000 each, with variable costs totaling $43,089 per car. Tesla will price the J1 at $75,000 with variable costs of $59,057 per car. Research among dealers suggests a cannibalization rate of 44% for the J1. Calculate weighted contribution margin for the new J1. Rounding: penny
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