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given the desire to cut carborn emissions Given the desire to cut carbon emissions, Ford is considering introducing a new production line of electric sedans.
given the desire to cut carborn emissions
Given the desire to cut carbon emissions, Ford is considering introducing a new production line of electric sedans. The expected annual unit sales of the electric cars is 40.000 : and the selling orice is $25,000 per car Varlable costs of production are $14,000 per car, The froed overhead, including salary of top executives is $90 million per vear. However, the introduction of the electric sedans will decrease Ford's sales of regular sedans by 6,000 cars per year; the regular sedans hawe a unit price of $20,000 a a unit variable cost of $12,000. and fixed costs of $250,000 per year. Depreciation costs of the new production line are $52,000 per year, The marginal tax rate is 29 peccent. What is the incremental annual cash flow from operations? Incremental annual cash flow from operations Step by Step Solution
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