Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per
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Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit; fixed costs = $3.9 million; quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best case scenario analysis? What about the worst-case scenario?
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Input area Priceunit 1400 Variable costunit 220 Fixed costs 3900000 Quant...View the full answer
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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