Question
4. Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,090 per unit; variable cost = $310 per unit;
4.
Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,090 per unit; variable cost = $310 per unit; fixed costs = $4.82 million; quantity = 72,000 units. Suppose the company believes all of its estimates are accurate only to within 17 percent. |
Required: |
What values should the company use for the four variables given here when it performs its best-case and worst-casescenario analysis?(Do not round intermediate calculations.Enter your answers in dollars, not millions of dollars.Round your answers to the nearest whole dollar amount (e.g.,1,234,567).) |
Scenario | Unit Sales | Unit Price | Unit Variable Cost | Fixed Costs | |||
Base case | 72,000 | $ | 1,090 | $ | 310 | $ | 4,820,000 |
Best case | |||||||
Worst case |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started