In April 2018, Ford Moto 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

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 pickup trucks

Answer 1

The decision by Ford Motor Company to focus on SUVs, pickup trucks, and commercial vehicles rather than passenger cars was mainly driven by:

A. falling sales revenue in their automobile line

This reflects that Ford was responding to market trends, where there was a decline in passenger car sales, prompting a strategic shift to more profitable vehicle categories.