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Profits and Cash Flows at Current Volume

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2007 2010 2012
Automotive Revenue $178 billion $178 billion $178 billion
Structural Cost $53 billion $44.5 billion $40.9 billion
Cost % to Revenue 29.8% 25.0% 23.0%
Income Difference N/A $8.5 billion $3.6 billion

Outcome 2 - missing goal 28% in 2010 and 25% in 2012 - analyze how this affects profit and cash flow at current volume
I need to figure the outcomes for this problem. I do not know how to do this. Could you please help me?
I am to use the volume above.

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Solution Summary

This solution shows step-by-step calculations in an Excel file to determine the outcomes by analyzing the automotive revenue, structural cost, cost, profit and income difference.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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