Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,000 per unit; variable costs = $400 per unit; fixed costs = $2.8 million; quantity=86,000 units. Suppose the company believes all of its estimates are accurate only to within ±10 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 86,000 94,600 77,400 Answer is complete but not entirely correct. Unit Price Unit Variable cost 2,000 2,200 1,800 400 360 440 Fixed Costs 2,800,000 3,405,600X 3,080,000

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
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What is the correct answer for the one incorrect one?
Homework i
C
raw
ill
arch
F1
Stinnett Transmissions, Incorporated, has the following estimates for its new gear
assembly project: Price = $2,000 per unit; variable costs $400 per unit; fixed costs =
$2.8 million; quantity = 86,000 units. Suppose the company believes all of its estimates
are accurate only to within ±10 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.)
Check my work mode: This shows what honorrect or incorrect for the work you have completed so far. It does
Scenario
Base
Best
Worst
@
2
F2
Unit Sales
♫
#3
86,000
94,600
77,400✔
F3
$
(1)
$
54
Answer is complete but not entirely correct.
Unit Price
Unit Variable cost
F4
2,000
2,200
1,800
DII
%
5
$
=
F5
Saved
< Prev
F6
A
6
400 $
360✔
440✔
1 of 4
*
Fixed Costs
F7
&
7
7
2,800,000✔
3,405,600 x
3,080,000✔
Next >
Auhindlah
PrtScn
F8
8
Home
F9
9
End
F10
Transcribed Image Text:Homework i C raw ill arch F1 Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,000 per unit; variable costs $400 per unit; fixed costs = $2.8 million; quantity = 86,000 units. Suppose the company believes all of its estimates are accurate only to within ±10 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.) Check my work mode: This shows what honorrect or incorrect for the work you have completed so far. It does Scenario Base Best Worst @ 2 F2 Unit Sales ♫ #3 86,000 94,600 77,400✔ F3 $ (1) $ 54 Answer is complete but not entirely correct. Unit Price Unit Variable cost F4 2,000 2,200 1,800 DII % 5 $ = F5 Saved < Prev F6 A 6 400 $ 360✔ 440✔ 1 of 4 * Fixed Costs F7 & 7 7 2,800,000✔ 3,405,600 x 3,080,000✔ Next > Auhindlah PrtScn F8 8 Home F9 9 End F10
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