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Jet001 [13]
1 year ago
13

Ford Motor Company is considering launching a new line of hybrid diesel-electric SUVs. The heavy advertising expenses associated

with the new SUV launch would generate operating losses of million next year. Without the new SUV, Ford expects to earn pre-tax income of $80 million from operations next year. Ford pays a 35% tax rate on its pre-tax income. The amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is closest to ________. Group of answer choices $15.8 million $40.3 million 12.3 million $28.0 million
Business
1 answer:
galina1969 [7]1 year ago
8 0

Answer:

$28 million

Explanation:

The amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is = $80 million * 35% = $28 million. Because the SUV have not been launched, the operating loss associated with heavy advertising will not be considered.

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