Ch$.9$: Scenario Analysis

Stelara Industries, Inc., has the following estimates for its new kitchen appliance project: Price $=$ $$483$ per unit; variable costs $=$ $$216$ per unit; fixed costs $=$ $$3$ million; quantity $=20,000$ units. Suppose the company believes all of its estimates are accurate only to within $\backslash$pm $15$ percent. When Stelara performs its best$-$case scenario analysis, what value should the company estimate for its rough profit $($Value sold $-$ Total Costs$)?$

You might want to look at slides $24-30$ of Chapter $9.$

Use the below table if you wish to copy the data into Excel.

Price per unit $$483$

Variable cost per unit $$216$

Fixed Costs $$3,000,000$

Quantity sold $20,000$

Price accuracy $15\%$

Variable cost accuracy $15\%$

Fixed cost accuracy $15\%$

Quantity accuracy $15\%$

Group of answer choices

$$3\mathrm{.}612,150$

$$4,807,350$

$$8,552,550$

$-$$$693,450$

$$1,769,850$

$$6,002,550$