Tesla Motors
"Going green" doesn't have to be boring. The Tesla Roadster Sport is an electric car that goes from 0 to 60 in four seconds and drives more like a race car than an environmentally friendly ride. But that level of performance will set you back $128,500. As of 2009, Silicon Valley-based Tesla Motors, Inc. was the only company offering highway-compatible electric cars. Most Roadster Sport buyers are car enthusiasts and are buying them for the "fun toy" aspect of having an electric car rather than for environmental reasons.
-Refer to Tesla Motors.If total fixed costs are $23,400,000 and the average variable cost is $50,500,how many Roadsters must Tesla sell to break even?
A) 130
B) 182
C) 250
D) 300
E) 463

Question

Quizplus · Accepted Answer

Breakeven quantity = Total fixed costs ÷ (Price - Average variable costs)OR
Break-even quantity = 23,400,000 ÷ (128,500 - 50,500)OR
Break-even quantity = Total fixed costs ÷ Fixed cost contribution (23,400,000 ÷ 78,000)

Tesla Motors "Going Green" Doesn't Have to Be Boring. the Tesla Roadster