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Olin Transmissions plc has the following estimates for its new gear assembly project: price = 1,900 per unit; variable costs = 240 per unit; fixed
Olin Transmissions plc has the following estimates for its new gear assembly project: price =
1,900 per unit; variable costs = 240 per unit; fixed costs = 4.8 million; quantity = 95,000 units. Suppose the com pany believes all of its estimates are accurate only to within 15 per cent. 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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