Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,160 per unit; variable cost = $380 per unit; fixed costs = $4.89 million; quantity = 79,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations and enter your answers in dollars, not million, rounded to the nearest whole number, e.g., 1,234,567.) Scenario Unit Sales Unit Price Unit Variable Cost Fixed Costs Base case 79,000 2$ 1,160 2$ 380 %24 4,890,000 Best case rag the crossh over the area you want to Worst case

Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,160 per unit; variable cost = $380 per unit; fixed costs = $4.89 million; quantity = 79,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations and enter your answers in dollars, not million, rounded to the nearest whole number, e.g., 1,234,567.) Scenario Unit Sales Unit Price Unit Variable Cost Fixed Costs Base case 79,000 2$ 1,160 2$ 380 %24 4,890,000 Best case rag the crossh over the area you want to Worst case

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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