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Excel Formula Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per
Excel Formula
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit; fixed costs = $3.9 million; quantity = 85,000 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? Price accuracy Variable cost accuracy Fixed cost accuracy Quantity accuracy 15% 15% 15% 15% Complete the following analysis. Do not hard code values in your calculations. Scenario Base case Best case Worst case Unit sales 85,000 $ Unit price Unit variable cost 1,400 $ 220 $ Fixed costs 3,900,000 Sheet1 II. ADY ATA 400Step by Step Solution
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