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 22,000; and the selling price is $20,000 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 $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 $ 116454790
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 22,000; and the selling price is $20,000 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 $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 $ 116454790
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 22,000; and the selling price is $20,000 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 $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 $
116454790
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