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Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,180 per unit; variable cost = $400 per unit; fixed

Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,180 per unit; variable cost = $400 per unit; fixed costs = $4.91 million; quantity = 81,000 units. Suppose the company believes all of its estimates are accurate only to within 16 percent.

Required:

What values should the company use for the four variables given here when it performs its best-case and worst-case scenario 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

81,000

$

1,180

$

400

$

4,910,000

Best case

93960

1368.8

Worst case

68040

991.2

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