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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
- 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 |
- 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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