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Tesla Inc., an electric vehicle manufacturer, presents the following data: Sales Revenue: $900,000,000 Variable Costs: $500,000,000 Fixed Costs: $200,000,000 Interest Expense: $25,000,000 Depreciation: $40,000,000 Tax

Tesla Inc., an electric vehicle manufacturer, presents the following data:

  • Sales Revenue: $900,000,000
  • Variable Costs: $500,000,000
  • Fixed Costs: $200,000,000
  • Interest Expense: $25,000,000
  • Depreciation: $40,000,000
  • Tax Rate: 20%
  • Total Assets: $800,000,000
  • Total Liabilities: $500,000,000
  • Shareholders' Equity: $300,000,000

    Requirements:


      1. Prepare an Income Statement for Tesla.
      2. Calculate the Contribution Margin.
      3. Determine the Break-Even Point in units (assume the average sales price per unit is $60,000).
      4. Calculate the Debt-to-Equity Ratio and Interest Coverage Ratio.

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