For the questions in this section, refer to the detailed report on the Automotive segment that begins on page 39 of the 10-K. These questions will be about the North American segment only.

5. Ford does not disclose automotive costs separately for each geographic segment. Instead, estimate Fords 2020 costs by subtracting EBIT from revenue for the North American segment only. (3 points)

6. Calculate automotive cost per unit sold in 2020 for the North American segment only. (2 points)

7. For the North American segment only, estimate the 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. Which year is your high point? Which year is your low point? (4 points)

a. What assumptions are we making when we use 2019 and 2020 as our high and low points? What assumptions are we making when we use a financial statement to assess costs? (4 points)