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Tesla Inc. conducts cost-volume-profit analysis for a new electric vehicle model. In December 2037, the company estimates the following costs: Fixed Costs: $100,000,000 Variable Cost
Tesla Inc. conducts cost-volume-profit analysis for a new electric vehicle model. In December 2037, the company estimates the following costs:
- Fixed Costs: $100,000,000
- Variable Cost per Vehicle: $50,000
- Selling Price per Vehicle: $90,000
Requirements:
- Calculate the contribution margin per vehicle.
- Determine the breakeven point in units and dollars.
- Prepare a budget for the expected sales volume.
- Perform sensitivity analysis for changes in costs and selling price.
- Provide strategic recommendations based on the CVP and budget analysis.
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