In 2023, Apple Inc. reported total revenue of $383.29 billion and a gross profit of $170.78 billion. The company's operating expenses, including research and development and selling, general, and administrative costs, amounted to $54.82 billion. Apple also incurred interest expenses of $2.69 billion and paid income taxes of $19.30 billion. Given these financial figures, what was Apple's net income for the 2023 fiscal year? How would you calculate the company's profit margin, and what does this metric indicate about Apple's financial performance? Tesla Inc. is considering introducing a new electric vehicle model and needs to determine its break-even point. The company estimates that the fixed costs associated with producing this new model will be $500 million per year. Variable costs are expected to be $35,000 per unit, which includes materials, direct labor, and variable overhead. Tesla plans to price the new model at $55,000 per unit. How many units of this new electric vehicle model does Tesla need to sell annually to break even? If Tesla aims to achieve a profit of $200 million in the first year, how many units would they need to sell? What does this analysis reveal about the financial viability of introducing this new model?
In 2023, Apple Inc. reported total revenue of $383.29 billion and a gross profit of $170.78 billion. The company's operating expenses, including research and development and selling, general, and administrative costs, amounted to $54.82 billion. Apple also incurred interest expenses of $2.69 billion and paid income taxes of $19.30 billion. Given these financial figures, what was Apple's net income for the 2023 fiscal year? How would you calculate the company's profit margin, and what does this metric indicate about Apple's financial performance? Tesla Inc. is considering introducing a new electric vehicle model and needs to determine its break-even point. The company estimates that the fixed costs associated with producing this new model will be $500 million per year. Variable costs are expected to be $35,000 per unit, which includes materials, direct labor, and variable overhead. Tesla plans to price the new model at $55,000 per unit. How many units of this new electric vehicle model does Tesla need to sell annually to break even? If Tesla aims to achieve a profit of $200 million in the first year, how many units would they need to sell? What does this analysis reveal about the financial viability of introducing this new model?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In 2023, Apple Inc. reported total revenue of $383.29 billion and a gross profit of
$170.78 billion. The company's operating expenses, including research and
development and selling, general, and administrative costs, amounted to $54.82
billion. Apple also incurred interest expenses of $2.69 billion and paid income
taxes of $19.30 billion. Given these financial figures, what was Apple's net
income for the 2023 fiscal year? How would you calculate the company's profit
margin, and what does this metric indicate about Apple's financial performance?
Tesla Inc. is considering introducing a new electric vehicle model and needs to
determine its break-even point. The company estimates that the fixed costs
associated with producing this new model will be $500 million per year. Variable
costs are expected to be $35,000 per unit, which includes materials, direct labor,
and variable overhead. Tesla plans to price the new model at $55,000 per unit.
How many units of this new electric vehicle model does Tesla need to sell
annually to break even? If Tesla aims to achieve a profit of $200 million in the
first year, how many units would they need to sell? What does this analysis reveal
about the financial viability of introducing this new model?
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