Question: Tesla Inc. has the following cost structure for its Model S and Model X: Model S: Sales Units - 50,000, Sales Price per Unit -

  1. Tesla Inc. has the following cost structure for its Model S and Model X:
    • Model S: Sales Units - 50,000, Sales Price per Unit - $80,000, Variable Cost per Unit - $50,000, Fixed Cost - $300,000,000
    • Model X: Sales Units - 30,000, Sales Price per Unit - $90,000, Variable Cost per Unit - $55,000, Fixed Cost - $200,000,000 Requirements:
    • Prepare the Income Statement for each model.
    • Calculate the Contribution Margin Ratio for each model.
    • Compute the overall Break-Even Point in dollars for Tesla.
    • Analyze the impact of a 10% increase in sales volume for each model on the overall profitability.

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