Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 22000; the price is $25000 per car. Variable cost of production are $10000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford’s sales of regular sedans by 8000 cars per year; the regular sedans have a unit price of $20000, a unit variable cost of $12000, and fixed costs of $250000 per year. Depreciation costs of the production plant are $48000 per year. The marginal tax rate is 40 percent. What is the incremental annual cash flow
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Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 22000; the price is $25000 per car. Variable cost of production are $10000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford’s sales of regular sedans by 8000 cars per year; the regular sedans have a...
Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 39,000; the price is $22,000 per car. Variable costs of production are $14,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford’s sales of regular sedans by 8,000 cars per year; the regular sedans have a...
Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 31,000; the price is $25,000 per car. Variable costs of production are $11,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford’s sales of regular sedans by 11,000 cars per year; the regular sedans have a...
Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 29,000; the price is $21,000 per car. Variable costs of production are $9,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford’s sales of regular sedans by 8,000 cars per year; the regular sedans have a...
Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 36,000; the price is $22,000 per car. Variable costs of production are $12,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford’s sales of regular sedans by 12,000 cars per year; the regular sedans have a...
Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 39,000; the price is $22,000 per car. Variable costs of production are $14,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford’s sales of regular sedans by 8,000 cars per year; the regular sedans have a...
Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 38,000; the price is $24,000 per car. Variable costs of production are $14,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford's sales of regular sedans by 10,000 cars per year; the regular sedans have a...
Question 7 2 View Policies Current Attempt in Progress Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 40,000; the price is $25,000 per car. Variable costs of production are $14,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford's sales of regular sedans by...
oles Finance Assignments CH 11 Homework CH 11 Homework L Send to Gradebook <Prev Next Question 4 /1 View Policies Current Attempt in Progress Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. The expected annual unit sales of the hybrid cars is 36,000; the price is $22.000 per car. Variable costs of production are $12,000 per car. The fixed overhead including salary of top executives is $80 million per year....
Hybrid cars are touted as a “green” alternative; however, the financial aspects of hybrid ownership are not as clear. Consider a 2015 Lexus RX 450h, which had a list price of $5,765 (including tax consequences) more than a Lexus RX 350. Additionally, the annual ownership costs (other than fuel) for the hybrid were expected to be $320 more than the traditional sedan. The mileage estimate was 5.2 litre/100 km for the hybrid and 6.9 for the traditional sedan. Hybrid cars...