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Problem 11-3 Scenario Analysis [LO2) Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,000 per unit, variable costs
Problem 11-3 Scenario Analysis [LO2) Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,000 per unit, variable costs = $600 per unit, fixed costs = $1.8 million, quantity = 90,000 units. Suppose the company believes all of its estimates are accurate only to within +20 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? Scenario Units Sales Unit Price Unit Variable cost Fixed Costs Base Best Worst
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