How many trucks should ford have produced

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Reference no: EM134040013

Question

The Ford F-150 is the best selling truck in the U.S. and has been the best selling truck in the U.S. for 46 consecutive years. Additionally, the F-150 has been the best selling vehicle (car/truck) in the U.S. for the past 41 years. For 2022, here are the data on the Ford F-150:

- Base price (XL trim) = $33,695

- Quantity (trucks sold) = 653,957

- Total Cost (TC) = $17,604 (estimate)

- Fixed Cost (FC) = 50% of TC

Assignment

1. How many trucks should Ford have produced in 2022 in order to break-even?

2. Based on the above data, how much net income did Ford make in total from F-150s in 2022?

3. How much net income (profit) did Ford make from each F-150 in 2022?

4. Based on the results, would you invest in a supplier firm to F-150s? Why or why not?

Reference no: EM134040013

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