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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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