1. What are some examples of Ford's variable costs (please discuss and explain 3)?

2. What are some examples of Ford's fixed costs (please discuss and explain 3)?

3. Is Ford a highly levered company? (Careful, the book discusses operating leverage. Your answer should be in the context of the definition of operating leverage discussed in your book). Why or why not? Also, how does this effect the break-even point? Explain.

4. If raw material costs such as steel (and all else equal meaning holding all other variables constant) were to increase how would this effect the following? Please explain.

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1 Answer Ford is focused on units produced so their variable costs will include variable factory overhead direct materials and direct labor One direct ... View the full answer