Below is a summary of the four variables of the production above (Production is 70,000 units). If the company believes that
all of their estimates are accurate to within 8%, what should be the values used by their company
for their worst case scenario? What about the best case scenario? What is the total cost, cash
break-even point, accounting break-even point, and the average per unit costs under each
scenario.
Base Case
Price		$ 87.13	per unit
Variable Costs		$ 75.12	per unit
Fixed Costs		$ 169,000	per year
Production		70,000	per year
Worst Case
Price		$ 80.16	per unit			Total Cost =	$ 5,407,292
Variable Costs		$ 81.13	per unit			Cash Break-even point =	(188,165)	units
Fixed Costs		$ 182,520	per year			Accounting Break-even point =	(447,763)	units
Production		64,400	per year			Average per unit Costs =	$ 83.96
Best Case
Price		$ 94.10	per unit			Total Cost =	$ 5,380,196
Variable Costs		$ 69.11	per unit			Cash Break-even point =	6,222	units
Fixed Costs		$ 155,480	per year			Accounting Break-even point =	16,298	units
Production		75,600	per year			Average per unit Costs =	$ 71.17
What is expected OCF (ignoring taxes)?
What is DOL (the answer might be a little crazy)?
If there is a -8% change in sales, what is the expected change to OCF?