When Tesla first launched their car company, they likely prepared a breakeven analysis to understand how many cars they needed to sell before reaching breakeven. Perhaps their most relevant data were as follows:

• Salaries for indirect labour such as executive, management, sales, scientific, and engineering staff: $150 million annually
• Overhead costs associated with production facilities, electricity consumption, heating, scrap removal and other overheads: $50 million annually
• Labour content in each vehicle for hourly production line vehicle assembly workers: $10000 per unit
• Cost of each vehicle excluding labour and batteries: $20,000 per unit
• Cost of the 100 kWh battery in each vehicle: $15,000 per unit

If the company expects to sell their cars for $50,000 per vehicle, how many do they need to sell in order to break even based on the (hypothetical) data as presented here?

Select one:

a.10001-20000 vehicles annually

b.More than 40,000 vehicles annually

c.Less than 10000 vehicles annually

d.30001-40000 vehicles annually

e.20001-30000 vehicles annually