Question

NARRBEGIN: Tesla Motors
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.
NARREND
Refer to Tesla Motors. If total fixed costs are $23,400,000 and the average variable costs is $50,500, how many Roadsters must Tesla sell to break-even?
a. 130
b. 182
c. 250
d. 300
e. 463

Answer

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