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EXAMPLE
Budgets
Chill Beverage has set a first-year retail sales goal of $50 million with a projected average retail price of $1.89 per unit for a total of 26,455,026 units sold. With an average wholesale price of 95 cents per unit, this provides revenues of $25.1 million. Chill Beverage expects to break even during the final quarter of the first year. A break-even analysis assumes per-unit wholesale revenue of 95 cents per unit, a variable cost per unit of 22 cents, and estimated first-year fixed costs of $12,500,000. Based on these assumptions, the break-even calculation is:
$12,500,000
$0.95/unit – $0.22/unit
= 17,123,287
What you have to do is make a “Budgets” similar to the example, but the product is different. Use Tesla Model 3 for your budgets. Just a small paragraph on it.
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