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Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,400 per unit; variable costs $280 per unit; fixed costs

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Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,400 per unit; variable costs $280 per unit; fixed costs = $1.4 million; quantity = 74,000 units. Suppose the company believes all of its estimates are accurate only to within 120 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? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Scenario Unit Sales Unit Price Unit Variable cost Fixed Costs Base Best Worst Bills Blossoms is analyzing a project with anticipated sales of 7,500 units, plus or minus 3 percent. The variable cost per unit is $10 +/-2 percent and the expected fixed costs are $242,000 plus or minus 2 percent. The sales price is estimated at $65 a unit, plus or minus 4 percent. The depreciation expense is $72,000 and the tax rate is 21 percent. What is the earnings before interest and taxes under the base-case scenario? Multiple Choice $170,500 $66,700 $98,500 $412,500 $106,280

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