Calculate weighted contribution margin for new

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Reference no: EM132048080

Tesla has been successful with its model M1, but is planning to expand its line of products with a new Model J1. Tesla sells the M1 for $70,000 each, with variable costs totaling $49,751 per car. Tesla will price the J1 at $75,000 with variable costs of $56,085 per car. Research among dealers suggests a cannibalization rate of 32% for the J1. Calculate weighted contribution margin for the new J1. Rounding: penny.

Reference no: EM132048080

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