Question
Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,230 per unit; variable cost = $450 per unit; fixed
Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,230 per unit; variable cost = $450 per unit; fixed costs = $4.96 million; quantity = 86,000 units. Suppose the company believes all of its estimates are accurate only to within 20 percent.
Required: What values should the company use for the vour variables give here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations).
Scenario | Unit Sales | Unit Price | Unit Variable Cost | Fixed Costs |
Base Case | 86,000 | $ 1,230 | $ 450 | $ 4,960,000 |
Best Case | $103,200 | $ 1,476 | $ ____ | $ ____ |
Worst Case | $68,800 | $ 984 | $ ____ | $ ____ |
I have completed the Unit Sales and Unit Price but I do need the Unit Variable Cost and Fixed Costs. I can't seem to get the correct answer.
Thank you!!
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