What would ford do applying relativism

Assignment Help Financial Accounting
Reference no: EM132968022

Ford Pinto

Ford Pinto was a subcompact vehicle that Ford Motor Company manufactured from 1970-1980. The Pinto caught on with consumers, and sales of the vehicle were high. However, serious problems quickly arose regarding the design of the Pinto. The gas tank on the vehicles was placed directly behind the rear axle instead of above it, with only nine inches of space between the gas tank and axle. Bolts were also placed close to the gas tank, increasing the risk that they could puncture the tank in an accident. Additionally, the fuel filler pipe design created a high probability that the pipe would disconnect from the tank and cause gasoline to spill out in rear-end collisions. Ford designed the gas tank with hopes of creating additional trunk space.

Ford knew of the potential vulnerability of the Ford Pinto design but did not change the design due to the costs involved. In deciding whether to institute a recall, Ford instituted a cost-benefit analysis.

Ford justified that making the design change would cost approximately $11 per vehicle. At 11 million vehicles and 1.5 million trucks, the estimated costs would approximate $137 million. Ford estimated that making the design change would result in 180 fewer burn deaths, 180 fewer serious burn injuries, and 2,100 fewer burned vehicles. At an estimate of $200,000 per death, $67,000 per injury, and $700 per vehicle, Ford calculated that the societal benefits of the design change would equal $49.5 million-much less than the costs of making the change.

Problem 1. What would the decision have been if applying a deontological ethical perspective?

Problem 2. What would Ford do applying relativism?

Problem 3. And what about virtue ethics?

Attachment:- Pinto.zip

Reference no: EM132968022

Questions Cloud

How would calculate the capacity analysis : How would calculate the capacity analysis? Between all packages offered, 13,397 units were sold in year 1. This is comprised of memberships offering
What the main impact of moving from a classical tax system : What the main impact of moving from a classical tax system to an imputation tax system is? removal of double taxation of dividends
What are the monthly payments for year one : What is the adjusted interest rate for the second year? What are the monthly payments for year 1 and 2 if $200,000 is borrowed?
Can employing child labour ever be ethical : Can employing child labour ever be ethical? On Saturday (September 2012), the Herald revealed that Sherrin balls were being hand-stitched
What would ford do applying relativism : What would Ford do applying relativism? Ford Pinto was a subcompact vehicle that Ford Motor Company manufactured from 1970-1980.
What were the total proceeds from the common stock sale : ABC C.o just completed an IPO with an investment bank on a firm-commitment basis. What were the total proceeds from the common stock sale?
What is percentage profit or loss if purchase the stock : Using the maximum margin allowed of 50%, what is your percentage profit or loss if you purchase the stock and it rises to $33 a share
Determine percentage profit or loss : Determine your percentage profit or loss if the stock price rises to $23 a share. You purchased shares of Broussard Company using 50 percent margin.
What must the market price be to generate : The investment will be depreciated over a period of 3 years. Tax is 25%. The cost per unit is estimated to be $100. What must the market price be to generate

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd