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Your response should be in an excel worksheet. All calculations should be done on a spreadsheet. Thank you! Scenaro Analyss The RI Department of Transportation
Your response should be in an excel worksheet. All calculations should be done on a spreadsheet. Thank you!
Scenaro Analyss The RI Department of Transportation is researching the pricing strategy relating to a local company called Auto Transmissions Inc (ATI). ATI has the following estimates for its new gear assembly project: price =$960 per unit; variable cost =$350 per unit; fixed costs =$3.6 million; quantity =55,000 units. Suppose the company believes all of its estimates are accurate only to within +/15%. What values should the company use for the four here when it performs its best-case scenario analysis? What about the worse-case scenario analysis? Sensitivity Analysis For the company in the previous question, suppose you are most concerned about the impact of its price estimate on the project's profitability. How could you address this concern for ATI? Describe how you would calculate your answer. What values would you use for the other forecast variables? Scenaro Analyss The RI Department of Transportation is researching the pricing strategy relating to a local company called Auto Transmissions Inc (ATI). ATI has the following estimates for its new gear assembly project: price =$960 per unit; variable cost =$350 per unit; fixed costs =$3.6 million; quantity =55,000 units. Suppose the company believes all of its estimates are accurate only to within +/15%. What values should the company use for the four here when it performs its best-case scenario analysis? What about the worse-case scenario analysis? Sensitivity Analysis For the company in the previous question, suppose you are most concerned about the impact of its price estimate on the project's profitability. How could you address this concern for ATI? Describe how you would calculate your answer. What values would you use for the other forecast variablesStep by Step Solution
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