Question
Tesla, Inc. is considering a new electric car model. The following information is provided: Fixed costs: $1,200,000 Variable costs per unit: $15,000 Selling price per
Tesla, Inc. is considering a new electric car model. The following information is provided:
•Fixed costs: $1,200,000
•Variable costs per unit: $15,000
•Selling price per unit: $25,000
Required:
1.Calculate the break-even point in units.
2.Determine the break-even point in dollars.
3.Explain the significance of the break-even point for Tesla’s decision-making.
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
