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Given the desire to cut carbon emissionsFord is considering introducing a new production line of electric sedans. The expected annuall unit sales of the electric
Given the desire to cut carbon emissionsFord is considering introducing a new production line of electric sedans. The expected annuall unit sales of the electric cars is 26,000 and the selling price is $21,000 per car Variable costs of production are $11,000 per carThe overhead, including salary of top executives is $80 million per year. However the introduction of the electric sedans will decrease Ford's sales of regular sedans by 9,000 cars per year, the regular sedans have a unit price of $20,000, a unit variable cost of $12,000 and costs of $ 250,000 per yearDepreciation costs of the new production line are $49,000 per yearThe marginal tax rate is 29 percentWhat is the incremental annual cash flow from operations ?
Given the desire to cut carbon emisions, Ford is convidering introducing a nce production line of electric sedant. The expected atinual unit wales of the electric cars in 26.000 and the seiling price is 521,000 per car, Variable costs of production are $11.000 per car. The fixed overtuad, includint calary of top ewecutives is $30 milion per year, Howeyer, the introduction of the electric sedars will decrease Ford's sales of reftular sedans by 9,000 cars per years the regular sed ans have a unit price of $20.000 a unit variable cout af $12.000. and fixed costs of $250,000 per year. Depreciation costs of the new production line are $49,000 per year. The marpinal tarrath is 29 percent. What is the incremental anmal cash flow tromoperations? incremental annal cash fow trom operations eTextbook and Media Attempts: 1 of 3 uted Step by Step Solution
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