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Ford Motor Company produces three vehicle models: Mustang, F-150, and Explorer. For the year ended December 31, 2023, the company provides the following information: Model

  1. Ford Motor Company produces three vehicle models: Mustang, F-150, and Explorer. For the year ended December 31, 2023, the company provides the following information:

Model

Units Sold

Sales Price per Unit ($)

Variable Cost per Unit ($)

Mustang

120,000

30,000

20,000

F-150

180,000

40,000

25,000

Explorer

100,000

35,000

22,000

  1. Required:
    • Calculate the total sales revenue for Ford Motor Company.
    • Determine the sales mix percentage.
    • Calculate the overall contribution margin ratio.
    • Determine the weighted average contribution margin per unit.
    • Analyze the impact of a 15% increase in variable costs on overall contribution margin.

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