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Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,140 per unit; variable cost = $360 per unit; fixed

Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,140 per unit; variable cost = $360 per unit; fixed costs = $4.87 million; quantity = 77,000 units. Suppose the company believes all of its estimates are accurate only to within 17 percent.

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