Question
Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,140 per unit; variable cost = $360 per unit; fixed
Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,140 per unit; variable cost = $360 per unit; fixed costs = $4.87 million; quantity = 77,000 units. Suppose the company believes all of its estimates are accurate only to within 17 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis?
base case, unit sales= 77,000; unit price= 1140; unit variable cost= 360; fixed costs= 4870,000
best case, unit sales= ; unit price=. ; unit variable costs= ; fixed costs
worst case, unit sales= ; unit price=. ; unit variable cost= ; fixed cost=
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