Troubling Auto Parts Inc. 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.) Base Best Worst Scenario Unit Sales Unit Price Unit Variable cost Fixed Costs
Troubling Auto Parts Inc. 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.) Base Best Worst Scenario 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
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Transcribed Image Text:Troubling Auto Parts Inc. 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.)
Base
Best
Worst
Scenario
Unit Sales
Unit Price
Unit Variable cost
Fixed Costs
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