Use the Information for the Question(s)below

question 8

Multiple Choice

Use the information for the question(s) below.
Ford Motor Company is considering launching a new line of Plug-in Electric SUVs.The heavy advertising expenses associated with the new SUV launch would generate operating losses of $35 million next year.Without the new SUV,Ford expects to earn pre-tax income of $80 million from operations next year.Ford pays a 21% tax rate on its pre-tax income.
-The amount that Ford Motor Company will owe in taxes next year with the launch of the new SUV is closest to:

• A)$9.45 million.
• B)$31.5 million.
• C)$56.0 million.
• D)$24.0 million.

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Definitions:

Quality Focus

The commitment to ensuring high standards of quality in products or services, often through continuous improvement processes.

Cost Leadership

A business strategy focused on achieving the lowest operational costs in an industry to offer products or services at competitive prices.

Differentiation Focus

Differentiation Focus is a strategy where a business aims to distinguish its products or services from competitors through unique features, quality, or customer service.

Cost Focus

A competitive strategy that involves a business striving to achieve cost leadership within a narrow market segment.