Answer Happy

2.Analyze the Impact of the Increase in sales over the next year. a.What are the average revenue (sales price) and cost of each car produced last year(eCar produced and delivered about 370,000 cars last year). Base the cost estimate on the automotive sales COGS (this reflects the variable cost for each chr). You must only complete the following table: Table 2.a 19952 15939 370,000 Automobiles sales (S) Automobile COGS ($) Sales (cars) Revenue/car (sales price) Cost/car b.Assume that the relationships between average revenue and cost stay the same next year (revenue/car and variable cost/car stay the same) and that nothing else changes in the financials. If sales do improve to 447914 cars, what would be the projected automotive sales ($) and the projected automotive COGS (S). You must only complete the following table.
b. Assume that the relationships between average revenue and cost stay the same next year (revenue/car and variable cost/car stay the same) and that nothing else changes in the financials. If sales do improve to 447914 cars, what would be the projected automotive sales ($) and the projected automotive COGS ($). You must only complete the following table. Table 2.1.1 Sales next year (cars) 447914 Projected automotive sales ($) Projected automotive COGS (S) Then what would be the expected profit margin, asset turnover, and return on assets if it were possible for the company to do this? You must only complete the following table. Table 2.b.2 Values Indicators Profit margin Asset turnover Return on assets 3.Analyze the impact of building a more efficient manufacturing plant. a. Return to the original data given in Exhibit 1. Assume that they use $2 billion of their cash and invest it in new equipment. Also, assume that they can raise the average revenue and lower the average cost as stated previously (see the following table) Sales (cars) Revenue/car Cost/car 447914 66706 38071 What would be the expected profit margin, asset turnover, and return on assets for the company after the change? You must only complete the following table.
What would be the expected profit margin, asset turnover, and return on assets for the company after the change? You must only complete the following table. Table 3.a Values Indicators Profit margin Asset turnover Return on assets b. Looking at different worst- and best-case scenarios is often good. What if ear can only increase the revenue per car to $57431 and only reduce the cost to $38071? What would be the expected profit margin, asset turnover, and return on assets if this happened (assume they make the investment in the equipment)? Table 3.b Values Indicators Profit margin Asset turnover Return on assets