Question: Please answer correctly and I WILL upvote, thanks! Given the desire to cut carbon emissions, Ford is considering introducing a new production line of electric
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 24,000 ; and the selling price is $22,000 per car. Variable costs of production are $10,000 per car. The fixed 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 7,000 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 $46.000 per year, The marginal tax rate is 29 percent. What is the incremental annual cash flow from operations? Incremental annual cash flow from operations \$
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