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For this question only, ignore additional key impacts items 1-6 above. Compute: (i) the relevant pre- tax cost of building a Swift Glider, and

 

For this question only, ignore additional key impacts items 1-6 above. Compute: (i) the relevant pre- tax cost of building a Swift Glider, and (ii) the pre-tax unit contribution margin on each Glider. What is the impact of the TonMart proposal on Falco Scooters' balance sheet? How should we incorporate that into our analysis? For simplicity, you should assume that the effect on our balance sheet takes place at a single point in time, at the time we sign the contract with TonMart. How should we treat the "erosion" issue in point 6 above? Provide a complete analysis of the estimated value created (or destroyed) by the TonMart proposal. Should Falco agree to the proposal?

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