Question
Whitewater Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,100 per unit; variable costs = $880 per unit; fixed
Whitewater Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,100 per unit; variable costs = $880 per unit; fixed costs = $6.1 million; quantity = 115,000 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 $ $ $
Best $ $ $
Worst $ $ $
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