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StinnettTransmissions,Inc.,has thefollowing estimates for its new gear assembly project: Price = $1,220 per unit; variable costs = $380 per unit; fixed costs = $3.75 million;
StinnettTransmissions,Inc.,has thefollowing estimates for its new gear assembly project: Price = $1,220 per unit; variable costs = $380 per unit; fixed costs = $3.75 million; quantity = 90,000 units. Suppose the company believes all of its estimates are accurate only to within 15 percent. suppose management is most concerned about the impact of its price estimate on the projects profitability. How could you address this concern? Describe how you would calculate your answer. What values would you use for the other forecast variables?
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