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Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $960 per unit; variable cost = $350 per unit; fixed

Automatic Transmissions, Inc., has the following

estimates for its new gear assembly project: price = $960 per unit; variable

cost = $350 per unit; fixed costs = $3.6 million; quantity = 55,000 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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