Example of Analytics a. What is a battery manufacturer's break-even level of sales, based on the falling prices of car batteries? b. Should the cost of a car battery be a fixed cost or a variable cost at Tesla? c. How do profit margins change at differing levels of car battery prices at Rivian, an electric truck manufacturer (and a competitor to Tesla in the electric car space)?

Example of Analytics a. What is a battery manufacturer's break-even level of sales, based on the falling prices of car batteries? b. Should the cost of a car battery be a fixed cost or a variable cost at Tesla? c. How do profit margins change at differing levels of car battery prices at Rivian, an electric truck manufacturer (and a competitor to Tesla in the electric car space)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

P 5-6 (LO 5.1, 5.4) The cost of a car battery is a major component...
The cost of a car battery is a major component of the cost of an electric car.
Required:
Which confirmatory analytics techniques (including prescriptive analytics and predictive analytics) should a business analyst use to
answer the following questions?
Example of Analytics
a. What is a battery manufacturer's break-even level of sales, based on
the falling prices of car batteries?
b. Should the cost of a car battery be a fixed cost or a variable cost at
Tesla?
c. How do profit margins change at differing levels of car battery prices at
Rivian, an electric truck manufacturer (and a competitor to Tesla in the
electric car space)?
Confirmatory Analytics Techniques

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