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
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
Section: Chapter Questions
Problem 1PS
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