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Tesla, Inc. is evaluating the profitability of its electric vehicles and needs to conduct a...

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Accounting

Tesla, Inc. is evaluating the profitability of its electric vehicles and needs to conduct a CVP analysis to guide decision-making. The cost accountant gathered data on variable costs, fixed costs, selling price per unit, and projected sales volume for each vehicle model. The data for the Model S, Model 3, and Model Y are as follows:

Model S:

  • Variable Cost per Unit: $40,000
  • Fixed Costs: $1,000,000
  • Selling Price per Unit: $80,000
  • Projected Sales Volume: 500 units

Model 3:

  • Variable Cost per Unit: $30,000
  • Fixed Costs: $800,000
  • Selling Price per Unit: $50,000
  • Projected Sales Volume: 1,000 units

Model Y:

  • Variable Cost per Unit: $35,000
  • Fixed Costs: $900,000
  • Selling Price per Unit: $60,000
  • Projected Sales Volume: 800 units

Conduct a comprehensive CVP analysis for each vehicle model and recommend strategic actions to maximize profitability.

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