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Category > Business & Finance Posted 17 Jun 2017 My Price 11.00

Automatic Transmissions, Inc., has the following estimates for its new gear assembly

Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,180 per unit; variable cost = $400 per unit; fixed costs = $4.91 million; quantity = 81,000 units. Suppose the company believes all of its estimates are accurate only to within A?± 16 percent.

Required:

What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars. Round your answers to the nearest whole dollar amount (e.g.,1,234,567).)

Scenario

Unit Sales

Unit Price

Unit Variable Cost

Fixed Costs

  Base case

81,000   

$

1,180   

$

400     

$

4,910,000   

  Best case

93960   

  

1368.8   

  

    

  

  

  Worst case

68040   

  

991.2

Answers

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Status NEW Posted 17 Jun 2017 01:06 PM My Price 11.00

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