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Sloan Transmissions, Inc., has the following estimates for its new gear assembly project price = $2,400 per unit: variable costs = $480 per unit; fixed
Sloan Transmissions, Inc., has the following estimates for its new gear assembly project price = $2,400 per unit: variable costs = $480 per unit; fixed costs = $2.9 million, quantity = 78,000 units. Suppose the company believes all of its estimates are accurate only to within 10 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? d Unit Price Scenario Base Fixed Costs Units Sales 78,000 $ 85,800 Unit Variable cost 480$ $ Best 2,400 2,640 2,160 432 2,900 X 2,610 X 3.190 % Worst 70,200 528
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