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Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,130 per unit; variable cost = $350 per unit; fixed
Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,130 per unit; variable cost = $350 per unit; fixed costs = $4.86 million; quantity = 76,000 units. Suppose the company believes all of its estimates are accurate only to within 16 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 Base case Best case Worst case Unit Sales Unit Price 76,000 $ 1,130 Unit Variable Cost 350 $ Fixed Costs $4,860,000
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