Note:

Q7 (c) - Your calculation should include both Australian and Chinese Sales.

Q7 (d) – The new selling price is referring to the selling price in China

Q7 (e) – Your table should report the following (please just type in a positive integer, for example, please type 345678 without any symbol for $345,678.34). Please note that we will check your spreadsheet to make sure you don't lose marks for a wrong data entry.

New selling price in CNY in China

New variable cost in CNY in China

New units sold in China

Please upload Excel worksheet. Additional 2 marks are allocated for clear Excel presentation.
 

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Tesla, a US car manufacturer, has a Chinese subsidiary "Shanghai Tesla Super factory" that manufactures and sells electric cars in China. a. The main input is priced in USD (USD10,000/unit) b. All other costs are in CNY (Fixed cost-CNY 500 million, Variable cost-CNY50,000/unit). c. Depreciation CNY 1 million d. So=CNY6.5/USD e. Expects to sell 10,000 cars this year at CNY300,000 each. f. Tax rate-30%; assuming tax credits are available for immediate use if losses occur Please type your answers as a number to 0 decimal place in the boxes below and do not include the currency symbols. For example, if your answer is AUD12345.67, please enter 12346. Please create an Excel spreadsheet to answer all of the following questions and upload your Excel spreadsheet in the next file response question. (Hint: you may use the goal seek and/or solver functions in Excel). a. What are the operating cash flows in CNY? What are the operating cash flows in USD? (2 marks) (2 marks) b. How many units does Tesla need to sell to break even in operating cash flows in dollars? (2 marks) Activate W Tesla, a US car manufacturer, has a Chinese subsidiary "Shanghai Tesla Super factory" that manufactures and sells electric cars in China. a. The main input is priced in USD (USD10,000/unit) b. All other costs are in CNY (Fixed cost-CNY 500 million, Variable cost-CNY50,000/unit). c. Depreciation CNY 1 million d. So=CNY6.5/USD e. Expects to sell 10,000 cars this year at CNY300,000 each. f. Tax rate-30%; assuming tax credits are available for immediate use if losses occur Please type your answers as a number to 0 decimal place in the boxes below and do not include the currency symbols. For example, if your answer is AUD12345.67, please enter 12346. Please create an Excel spreadsheet to answer all of the following questions and upload your Excel spreadsheet in the next file response question. (Hint: you may use the goal seek and/or solver functions in Excel). a. What are the operating cash flows in CNY? What are the operating cash flows in USD? (2 marks) (2 marks) b. How many units does Tesla need to sell to break even in operating cash flows in dollars? (2 marks) Activate W

Answer rating: 100% (QA)

c To calculate the operating cash flows in dollars we need to consider the revenue from the additional sales in Australia the shipment costs and the e... View the full answer