Question
Problem 11-3 Scenario Analysis (LO2) Whitewater Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,740 per unit; variable costs
Problem 11-3 Scenario Analysis (LO2)
Whitewater Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,740 per unit; variable costs = $520 per unit; fixed costs = $4.3 million; quantity = 97,000 units. Suppose the company believes all of its estimates are accurate only to within 15%. 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? (Enter the answers in dollars, not millions of dollars, i.e. 1,234,567. Omit $ sign in your response.)
Scenario | Units Sales | Unit Price | Variable Cost | Fixed Costs |
Base | $ | $ | $ | |
Best | $ | $ | $ | |
Worst | $ | $ | $ | |
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