(Historical vs. replacement costs; team activity) The following illustration depicts the cost of rebuilding a 1993 Taurus with Ford replacement parts.

Form a team of three. With each team member representing a different per¬ spective, prepare an oral presentation to discuss the effects of an extremely harsh, snow-laden winter on your business operations (revenues and costs).

a. As the head of Ford’s replacement parts division.

b. As a salesperson who must drive his/her automobile for an additional 30,000 miles.

c. As the accountant for a company that provides 30 Tauruses to employees who have limited ability to drive in the snow.LO1

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Replacement-Part Prices Rebuilding a $19,095 1993 Taurus with Ford replacement parts would cost $62,000. TAURUS Front bumper Front axles Rear suspension Left rear door, tinted glass, Exhaust system cover $376.22 $757.44 assembly $1,391.75 power windows $964.09 and locks $1,556.55 Source: Alliance of American Insurers