Scenario Base Best Worst Unit Sales 84,000 84,000 84,000 $ Answer is complete but not entirely correct. Unit Variable cost Unit Price 1,900 2,185 1,615 $ 380 437 X 323 X $ Fixed Costs 4,100,000 4,100,000 4,100,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Stinnett Transmissions, Incorporated, has the following estimates for its new gear
assembly project: Price = $1,900 per unit; variable costs $380 per unit; fixed costs =
$4.1 million; quantity = 84,000 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
84,000
84,000
84,000
$
Answer is complete but not entirely correct.
Unit Variable cost
Unit Price
1,900
2,185
1,615
$
380 $
437 X
323
Fixed Costs
4,100,000
4,100,000
4,100,000
Transcribed Image Text:Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,900 per unit; variable costs $380 per unit; fixed costs = $4.1 million; quantity = 84,000 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 84,000 84,000 84,000 $ Answer is complete but not entirely correct. Unit Variable cost Unit Price 1,900 2,185 1,615 $ 380 $ 437 X 323 Fixed Costs 4,100,000 4,100,000 4,100,000
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