Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,070 per

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Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,070 per unit; variable cost = $290 per unit; fixed costs = $4.8 million; quantity = 70,000 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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Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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