1. Tesla launches a new electric vehicle with a target selling price of $50,000. Estimated costs include direct materials $20,000, direct labor $10,000, variable overhead $5,000, fixed costs $30,000,000.
   • Requirements:
     • Apply the revenue recognition principle to determine when Tesla should recognize revenue from vehicle sales.
     • Calculate the break-even point in units and sales dollars.
     • Prepare a cost-volume-profit analysis considering the revenue recognition timeline.
     • Discuss how revenue recognition affects profitability analysis.
     • Recommend strategies to optimize pricing and cost structure based on revenue recognition considerations.