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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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