1. For the North American segment only, estimate the average variable cost per unit using the high/low method. Use 2019 and 2020 as your two points for calculating the change in costs and change in units.
2. For the North American segment only, estimate Fords fixed costs using the number of units sold, total automotive cost, and the variable cost per unit that you calculated in #8 above.
3. For the North American segment only, what is Fords estimated contribution margin per unit sold in 2020? What does this number mean?
4. In the North American segment only, estimate Fords break-even point in 2020?
5. In the North American segment only, how many units did Ford sell above (below) its break-even point? How would you use this information to help management make decisions?
6. What assumptions did you have to make in order to perform cost profit analysis using Fords financial statements?

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Automotive Segment The table below shows our full year 2019 Automotive segment EBIT by business unit (in millions). $ North America South America Europe China (including Taiwan) International Markets Group Automotive Segment 2018 7,607 $ (678) (210) (1,545) 248 5,422 $ 2019 6,612 $ (704) 123 (771) (334) 4,926 $ H/(L) (995) (26) 333 774 (582) (496) $ The tables below and on the following pages provide full year 2019 key metrics and the change in full year 2019 EBIT compared with full year 2018 by causal factor for our Automotive segment and its regional business units. For a description of these causal factors, see Definitions and Information Regarding Automotive Causal Factors. 2018 2019 H/(L) Key Metrics Market Share (%) Wholesale Units (000) Revenue ($M) EBIT ($M) EBIT Margin (%) 6.3% 5,982 148,294 5,422 3.7 % $ 6.0 % 5,386 143,599 4,926 3.4 % $ (0.3) ppts (596) (4,695) (496) (0.3) ppts $ Change in EBIT by Causal Factor (in millions) 2018 Full Year EBIT Volume / Mix Net Pricing Cost Exchange Other 2019 Full Year EBIT 5,422 (720) 3,093 (1,552) (904) (413) 4,926 In 2019, wholesales in our Automotive segment declined 596,000 units year-over-year, reflecting decreases in each business unit, while Automotive revenue was down 3.2 percent from 2018. Our full year 2019 Automotive segment EBIT was $4.9 billion, down $496 million from 2018, and EBIT margin was 3.4 percent. Favorable mix was more than offset by the impact of lower volume, including the effects of new product launches. We had higher net pricing across most business units. Costs were higher, driven by higher material and warranty costs, while structural costs, excluding pension and OPEB, were lower, primarily as a result of improved fitness and global redesign actions. Exchange was unfavorable, and other adverse impacts included UAW contract ratification costs. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Automotive Segment The table below shows our full year 2020 Automotive segment EBIT by business unit (in millions). North America South America Europe China (including Taiwan) International Markets Group Automotive Segment 2019 6,612 $ (704) 123 (771) (334) 4,926 $ 2020 3,625 $ (491) (834) (501) (166) 1,633 $ H/(L) (2,987) 213 (957) 270 168 (3,293) The tables below and on the following pages provide full year 2020 key metrics and the change in full year 2020 EBIT compared with full year 2019 by causal factor for our Automotive segment and its regional business units. For a description of these causal factors, see Definitions and Information Regarding Automotive Causal Factors. 2019 2020 H/(L) Key Metrics Market Share (%) Wholesale Units (000) Revenue (SM) EBIT ($M) EBIT Margin (%) 6.0 % 5,386 143,599 4,926 3.4 % $ 5.8 % 4,187 115,885 1,633 1.4 % $ (0.2) ppts (1,199) (27,714) (3,293) (2.0) ppts $ Change in EBIT by Causal Factor (in millions) 2019 Full Year EBIT Volume / Mix Net Pricing Cost Exchange Other 2020 Full Year EBIT 4,926 (9,417) 4,985 904 (312) 547 1,633 In 2020, wholesales in our Automotive segment declined 22 percent from a year ago, reflecting a decrease in each business unit other than China. Full year 2020 Automotive revenue decreased 19 percent from a year ago Our full year 2020 Automotive segment EBIT decreased $3.3 billion from a year ago with an EBIT margin of 1.4 percent. Higher net pricing and favorable mix were more than offset by the impact of COVID-related lower industry volume and the changeover to the all-new F-150. Structural costs were significantly lower, primarily reflecting the impact of our suspension of production earlier in the year due to COVID-19. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Automotive Segment The table below shows our full year 2019 Automotive segment EBIT by business unit (in millions). $ North America South America Europe China (including Taiwan) International Markets Group Automotive Segment 2018 7,607 $ (678) (210) (1,545) 248 5,422 $ 2019 6,612 $ (704) 123 (771) (334) 4,926 $ H/(L) (995) (26) 333 774 (582) (496) $ The tables below and on the following pages provide full year 2019 key metrics and the change in full year 2019 EBIT compared with full year 2018 by causal factor for our Automotive segment and its regional business units. For a description of these causal factors, see Definitions and Information Regarding Automotive Causal Factors. 2018 2019 H/(L) Key Metrics Market Share (%) Wholesale Units (000) Revenue ($M) EBIT ($M) EBIT Margin (%) 6.3% 5,982 148,294 5,422 3.7 % $ 6.0 % 5,386 143,599 4,926 3.4 % $ (0.3) ppts (596) (4,695) (496) (0.3) ppts $ Change in EBIT by Causal Factor (in millions) 2018 Full Year EBIT Volume / Mix Net Pricing Cost Exchange Other 2019 Full Year EBIT 5,422 (720) 3,093 (1,552) (904) (413) 4,926 In 2019, wholesales in our Automotive segment declined 596,000 units year-over-year, reflecting decreases in each business unit, while Automotive revenue was down 3.2 percent from 2018. Our full year 2019 Automotive segment EBIT was $4.9 billion, down $496 million from 2018, and EBIT margin was 3.4 percent. Favorable mix was more than offset by the impact of lower volume, including the effects of new product launches. We had higher net pricing across most business units. Costs were higher, driven by higher material and warranty costs, while structural costs, excluding pension and OPEB, were lower, primarily as a result of improved fitness and global redesign actions. Exchange was unfavorable, and other adverse impacts included UAW contract ratification costs. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Automotive Segment The table below shows our full year 2020 Automotive segment EBIT by business unit (in millions). North America South America Europe China (including Taiwan) International Markets Group Automotive Segment 2019 6,612 $ (704) 123 (771) (334) 4,926 $ 2020 3,625 $ (491) (834) (501) (166) 1,633 $ H/(L) (2,987) 213 (957) 270 168 (3,293) The tables below and on the following pages provide full year 2020 key metrics and the change in full year 2020 EBIT compared with full year 2019 by causal factor for our Automotive segment and its regional business units. For a description of these causal factors, see Definitions and Information Regarding Automotive Causal Factors. 2019 2020 H/(L) Key Metrics Market Share (%) Wholesale Units (000) Revenue (SM) EBIT ($M) EBIT Margin (%) 6.0 % 5,386 143,599 4,926 3.4 % $ 5.8 % 4,187 115,885 1,633 1.4 % $ (0.2) ppts (1,199) (27,714) (3,293) (2.0) ppts $ Change in EBIT by Causal Factor (in millions) 2019 Full Year EBIT Volume / Mix Net Pricing Cost Exchange Other 2020 Full Year EBIT 4,926 (9,417) 4,985 904 (312) 547 1,633 In 2020, wholesales in our Automotive segment declined 22 percent from a year ago, reflecting a decrease in each business unit other than China. Full year 2020 Automotive revenue decreased 19 percent from a year ago Our full year 2020 Automotive segment EBIT decreased $3.3 billion from a year ago with an EBIT margin of 1.4 percent. Higher net pricing and favorable mix were more than offset by the impact of COVID-related lower industry volume and the changeover to the all-new F-150. Structural costs were significantly lower, primarily reflecting the impact of our suspension of production earlier in the year due to COVID-19