3. 3.

Scenario analysis [LO 11.2] Baladjie Motors Limited has the following estimates for its new gear assembly project: price = $1 440 per unit; variable costs = $460 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 per cent. 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?