Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,220 per unit; variable costs = $380 per unit; fixed costs = $3.75 million; quantity = 90,000 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.) Scenario Base Best Units Sales Unit Price Unit Variable Cost Fixed Costs

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Raghubhai

Stinnett Transmissions, Incorporated, has the following estimates for its new gear
assembly project: Price $1,220 per unit; variable costs = $380 per unit; fixed costs =
$3.75 million; quantity = 90,000 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.)
Scenario
Base
Best
Worst
=
Units Sales
Unit Price
Unit Variable Cost
Fixed Costs
Transcribed Image Text:Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price $1,220 per unit; variable costs = $380 per unit; fixed costs = $3.75 million; quantity = 90,000 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.) Scenario Base Best Worst = Units Sales Unit Price Unit Variable Cost Fixed Costs
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