Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Whitewater Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,000 per unit; variable costs = $780 per unit; fixed

Whitewater Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,000 per unit; variable costs = $780 per unit; fixed costs = $5.6 million; quantity = 110,000 units. Suppose the company believes all of its estimates are accurate only to within 15%. 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? (Enter the answers in dollars, not millions of dollars, i.e. 1,234,567. Omit $ sign in your response.) Scenario Units Sales Unit Price Variable Cost Fixed Costs Base 110000 Numeric ResponseEdit Unavailable. 110000 correct. $ 2000 Numeric ResponseEdit Unavailable. 2000 correct. $ 780 Numeric ResponseEdit Unavailable. 780 correct. $ 5600000 Numeric ResponseEdit Unavailable. 5600000 correct. Best 126500 Numeric ResponseEdit Unavailable. 126500 correct. $ 2300 Numeric ResponseEdit Unavailable. 2300 correct. $ 897 Numeric ResponseEdit Unavailable. 897 incorrect. $ 6440000 Numeric ResponseEdit Unavailable. 6440000 incorrect. Worst 93500 Numeric ResponseEdit Unavailable. 93500 correct. $ 1700 Numeric ResponseEdit Unavailable. 1700 correct. $ 663 Numeric ResponseEdit Unavailable. 663 incorrect. $ 4760000 Numeric ResponseEdit Unavailable. 4760000 incorrect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Accounting

Authors: Needles, Powers, crosson

11th Edition

1439037744, 978-1133626985, 978-1439037744

More Books

Students also viewed these Accounting questions

Question

What is the role of automation in J-I-T?

Answered: 1 week ago