Current Attempt in Progress

Your answer is incorrect.

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 $31,000$ ; and the selling price is $$25,000$ per car. Variable costs of production are $$11,000$ per car. The fixed overhead, including salary of top executives $$80$ million per year. However, the introduction of the electric sedans will decrease Ford's sales of regular sedans by $10,000$ cars per year; the regular sedans have a unit price of $$20,000,$ a unit variable cost of $$12,000,$ and fixed costs of $$250,000$ per year. Depreciation costs of the new production line are $$50,000$ per year. The marginal tax rate is $29$ percent. What is the incremental annual cash flow from operations?

Incremental annual cash flow from operations

$ $$

eTextbook and Media