1. Tesla, Inc.

Scenario: Cost-Volume-Profit (CVP) Analysis

Data: Tesla, Inc. sells electric vehicles with a selling price of $50,000 per unit. Variable costs amount to $30,000 per unit, and fixed costs are $10,000,000 per year.

Requirements:

1. Calculate Tesla, Inc.'s contribution margin per unit and contribution margin ratio.
2. Determine the breakeven point in units and dollars.
3. Discuss the importance of contribution margin in CVP analysis for Tesla, Inc.
4. Analyze how changes in sales volume affect Tesla, Inc.'s profitability.
5. Evaluate Tesla, Inc.'s margin of safety and risk management.