In April 2018, Ford Motor Company made a decision about their opportunity costs moving forward and announced they will focus future production on SUVs, pickup trucks, and commercial vehicles rather than passenger cars. This decision was driven by a desire to make the company more profitable in light of:

Question

In April 2018, Ford Motor Company made a decision about their opportunity costs moving forward and announced they will focus future production on SUVs, pickup trucks, and commercial vehicles rather than passenger cars. This decision was driven by a desire to make the company more profitable in light of:

a. falling sales revenue in their automobile line.
b. growing sales revenue in their automobile line.
c. the environmental benefit of SUVs.
d. the profitability of selling more pick up truck

Answer 1

a. falling sales revenue in their automobile line.

Ford Motor Company's decision to focus future production on SUVs, pickup trucks, and commercial vehicles rather than passenger cars was primarily driven by falling sales revenue in their traditional passenger car line and the higher profitability margins found in SUVs and trucks. Demand for passenger cars had been declining, and the company chose to capitalize on the more profitable segments of the automotive market.