Ford Motor Company (FORD) sales jumped 31.5 % during June 2022 in the United States as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ford Motor Company (FORD) sales jumped 31.5 % during June 2022 in the United States as compared to the prior month. Sales of Ford's F-series trucks and the Explorer, Expedition, and Navigator SUV models drove the sales growth. According to a Bloomberg article (link) earlier this year, the F-150 Series product line is Ford's most profitable product line. Ford has three categories of vehicles, Trucks, SUVs, and Cars. According to Ford's 2021 Form 10-K, below are the combined US unit sales of its vehicles in 2021 (both retail and wholesale). In addition, hypothetical average sales prices and average variable cost per unit are given. Trucks SUVS Cars Total *Hypothetical sales price and cost data Unit sales 1,953,670 1,551,817 116,949 3,622,436 % of total unit sales (Unit sales/ Total unit sales) Average sales price per unit* $52,000 $45,000 $31,000 ΝΑ Average variable cost per unit* $38,480 $34,650 $25,110 ΝΑ To download the above table in Excel format for accessibility, click on this link. View a quick tutorial video about the sales mix at multiproduct firms at this link and then answer the following questions. Note to instructors: This post is assignable in Pearson's MyLab and has questions that are auto-graded. All blog questions are found in Instructor Tools > Assignment Manager > Create Assignment > Create homework > And then change the chapter to "News. Accounting in the Headlines." The "News. Accounting in the Headlines" chapter will be near the bottom of the list of chapters. Questions 1. Assume that Ford's sales revenue is the same as last year's sales revenue, yet its profits increase. How might this be possible? 2. Assume that consumer demand for cars is continually to decrease significantly. What strategy might Ford use to deal with this trend so that its net income does not also decrease? 3. According to the unit sales and hypothetical sales and cost data given in the article, what would Ford's weighted-average contribution margin be? Ford Motor Company (FORD) sales jumped 31.5 % during June 2022 in the United States as compared to the prior month. Sales of Ford's F-series trucks and the Explorer, Expedition, and Navigator SUV models drove the sales growth. According to a Bloomberg article (link) earlier this year, the F-150 Series product line is Ford's most profitable product line. Ford has three categories of vehicles, Trucks, SUVs, and Cars. According to Ford's 2021 Form 10-K, below are the combined US unit sales of its vehicles in 2021 (both retail and wholesale). In addition, hypothetical average sales prices and average variable cost per unit are given. Trucks SUVS Cars Total *Hypothetical sales price and cost data Unit sales 1,953,670 1,551,817 116,949 3,622,436 % of total unit sales (Unit sales/ Total unit sales) Average sales price per unit* $52,000 $45,000 $31,000 ΝΑ Average variable cost per unit* $38,480 $34,650 $25,110 ΝΑ To download the above table in Excel format for accessibility, click on this link. View a quick tutorial video about the sales mix at multiproduct firms at this link and then answer the following questions. Note to instructors: This post is assignable in Pearson's MyLab and has questions that are auto-graded. All blog questions are found in Instructor Tools > Assignment Manager > Create Assignment > Create homework > And then change the chapter to "News. Accounting in the Headlines." The "News. Accounting in the Headlines" chapter will be near the bottom of the list of chapters. Questions 1. Assume that Ford's sales revenue is the same as last year's sales revenue, yet its profits increase. How might this be possible? 2. Assume that consumer demand for cars is continually to decrease significantly. What strategy might Ford use to deal with this trend so that its net income does not also decrease? 3. According to the unit sales and hypothetical sales and cost data given in the article, what would Ford's weighted-average contribution margin be?
Expert Answer:
Answer rating: 100% (QA)
1 This could be possible if Ford was able to reduce its average variable costs per unit while mainta... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
Students also viewed these management leadership questions
-
Most airlines in the United States have frequent flier programs that grant free flights if a customer accumulates enough flight miles on the airline. For example, United Airlines offers a free...
-
The number of branded retail outlets in the United States and the United Kingdom for Murphy Oil Corporation as of December 31 of each year from 2001 to 2010 is shown below: Develop a chart that...
-
The most widely consumed fruit in the United States is the humble banana. Most of the bananas consumed in the United States are imported from Latin America. Ecuador is one of the largest exporters of...
-
Compute the given derivatives with the help of formulas (1)(4). (a) (b) d dx (1) - x=e
-
What is a depreciation of the Thai baht relative to the Malaysian ringgit? What happens to the baht price of the ringgit in this situation?
-
Shareholders Equity Raun Company had the following equity' items as of December 31, 2016: Preferred stock, 9% cumulative, $100 par, convertible Paid-in capital in excess of par value on preferred...
-
The records of TNA Corporation at the end of 2020 provided the following data related to income taxes. - Unrealized gain on the company's investment portfolio, \(\$ 50,000\); recognized in net income...
-
You are the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees. The Consumer Affairs...
-
2. Can you briefly explain, what conveys a market analysis? Whyis it important when doing a marketing plan? 2 answers
-
Read the following two-part scenario and answer the questions provided. In each of your responses, please include: A clear answer that shows your understanding of the course material All of the...
-
The mean breaking strength of a meyaltallic wire is 5 8 3 pounds with a standard deviation of 9 pounds. a ) What is the probability that a random sample of size 4 9 drawn from this population will...
-
The analysts at Keppelcorp have determined that at a price of Sp, the company will sell z widgets where x = 2050-25p Using the price you found in the previous question which maximizes revenue,...
-
A two-bladed wind turbine is operated with the following characteristics: Upstream velocity: 7.3 m/s, Axial induction factor: 0.33, Blade flow angle: 9.1 degrees, Angle of attack: 7.9 degrees, Width...
-
Schrand Aerobics, Inc., rents studio space ( including a sound system ) and specializes in offering aerobics classes. On January 1 , its beginning account balances are as follows: Cash, $ 5 , 0 0 0 ;...
-
Date December 1 Checks Deposits December 6 $ 7,620 December 11 December 17 550 13,900 $ 28,000 The December bank statement and cash T-account for Stewart Company follow: Other Balance $ 48,000 40,...
-
Prepare a Note Amortization table thru payoff. 2 . Journalize transactions ( Click tab below. ) Issue Date: 1 / 1 / 2 0 1 2 Note Amount: 4 0 , 0 0 0 Interest Rate ( Annual ) : 9 % Interest Rate per...
-
what would be a new idea or experiment for a future direction of the research on "parental influence on academic achievement"? What would you recommend for somebody wanting to take the next step in...
-
The words without recourse on an indorsement means the indorser is: a. not liable for any problems associated with the instrument. b. not liable if the instrument is dishonored. c. liable personally...
-
Selected data for General Mills for Year 2, Year 3, and Year 4 appear below (amounts in millions): Required a. Compute the rate of return on common shareholders' equity (ROCE) for Year 2, Year 3, and...
-
For this exercise, use the preceding data for Schwartz Company. Now assume that Schwartz pays common shareholders a dividend of $25 in Year +1. Assume that Schwartz uses long-term debt as a flexible...
-
Mercedes Benz (MB) incurs costs of $30,000 in manufacturing an automobile during Year 4. Assume that it incurs all of these costs in cash. MB sells this automobile to you on January 1, Year 5, for...
-
5. What can you do to protect your privacy online? Draw up a concrete list of steps that you might reasonably consider. Are there some actions that you would not be willing to take, either because...
-
4. Anthony Davis operated a computer bulletin board system that permitted users to send and receive e-mail, access the Internet, and download software. Davis's system had one attribute that...
-
1. The FTC offers advice to Web site operators about how to comply with the Children's Online Privacy Protection Act at http://www.ftc.gov/privacy/privacyinitiatives/childrens.html. Choose a Web site...
Study smarter with the SolutionInn App