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