Problem 11-3 Scenario Analysis [LO2] Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price $2,100 per unit; variable costs = $420 per unit; fixed costs = $5.0 million; quantity = 88,000 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 scenario analysis? What about the worst-case scenario? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Scenario Base Best Worst Unit Sales Unit Price Unit Variable cost Fixed Costs
Problem 11-3 Scenario Analysis [LO2] Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price $2,100 per unit; variable costs = $420 per unit; fixed costs = $5.0 million; quantity = 88,000 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 scenario analysis? What about the worst-case scenario? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Scenario Base Best Worst Unit Sales Unit Price Unit Variable cost Fixed Costs
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Problem 11-3 Scenario Analysis [LO2]
Stinnett Transmissions, Incorporated, has the following estimates for its new gear
assembly project: Price $2,100 per unit; variable costs = $420 per unit; fixed costs =
$5.0 million; quantity = 88,000 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 scenario analysis? What about the
worst-case scenario? (Do not round intermediate calculations and round your answer
to the nearest whole number, e.g., 32.)
Scenario
Base
Best
Worst
Unit Sales
Unit Price
Unit Variable cost
Fixed Costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffddbef72-e729-4301-8e09-712354ac0c50%2Fc594394f-61c8-4179-80d0-cc86878a1849%2Fkza31v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 11-3 Scenario Analysis [LO2]
Stinnett Transmissions, Incorporated, has the following estimates for its new gear
assembly project: Price $2,100 per unit; variable costs = $420 per unit; fixed costs =
$5.0 million; quantity = 88,000 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 scenario analysis? What about the
worst-case scenario? (Do not round intermediate calculations and round your answer
to the nearest whole number, e.g., 32.)
Scenario
Base
Best
Worst
Unit Sales
Unit Price
Unit Variable cost
Fixed Costs
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