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Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,260 per unit; variable cost $480 per unit; fixed
Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,260 per unit; variable cost $480 per unit; fixed costs = $4.99 million; quantity = 89,000 units. Suppose the company believes all of its estimates are accurate only to within 22 percent. What values should the company use for the four variables given here when it performs its best- case and worst-case scenario analysis? Note: Do not round Intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Scenario Unit Sales Unit Price Base case 89,000 $ Unit Variable Cost 1,260 $ Fixed Costs 480 $ 4,990,000 Best case Worst case
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