Tesla is considering whether to continue manufacturing a specific car model. The following data is available:

• Sales Revenue: $5,000,000
• Variable Costs: $3,000,000
• Fixed Costs: $1,500,000
• Alternative Use of Facilities: $1,200,000
• Disposal Value of Equipment: $500,000

Requirements:

1. Prepare a Differential Analysis to decide whether to continue or discontinue the car model.
2. Calculate the Net Differential Income.
3. Analyze the impact of the alternative use of facilities.
4. Prepare a recommendation report for Tesla.