The sales forecast is based on projected levels of demand, Ask an Expert

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The sales forecast is based on projected levels of demand. All the numbers are expressed in today’s dollars.

Price per bus $220,000

Units sold per year 12,250

Labor cost per bus $32,500

Components & Parts $86,500

Selling General & Administrative $200,000,000

The average warranty cost per year per bus for the first five years is $2,000. The present value of this cost will be used as a cost figure for each bus. Afterwards, the bus operator will become responsible the repairs on the buses. The buses can be produced for 15 years. Afterwards, the designs become obsolete.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93053851

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