Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,170 per unit; variable cost = $390 per unit; fixed

Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,170 per unit; variable cost = $390 per unit; fixed costs = $4.90 million; quantity = 80,000 units. Suppose the company believes all of its estimates are accurate only to within 15 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).)

Need best case and worst case for each one.

Scenario Unit Sales Unit Price Unit Variable Cost Fixed Costs
Base case 80,000 $ 1,170 $ 390 $ 4,900,000
Best case
Worst case

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research In Finance Volume 24

Authors: Andrew H. Chen

1st Edition

0762313773, 978-0762313778

More Books

Students also viewed these Finance questions

Question

Explain why quality must be cost-effective

Answered: 1 week ago

Question

Problem: Evaluate the integral: I - -[ze dx

Answered: 1 week ago

Question

Problem: Evaluate the integral: I = 1- 1 dx 9

Answered: 1 week ago

Question

Describe the Indian constitution and political system.

Answered: 1 week ago

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago