cost $350 per unit; fixed costs $4.86 million; quantity=76,000 units. Suppose the company believes all of its estimates are accurate only to within 116 percent. What values should the company use for the four variables given here when it performs its best- case and worst-case scenario analysis? Note: Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Scenario Base case Best case Worst case Unit Sales Unit Price Unit Variable Cost 1,130 S 350 76,000 $ Fixed Costs $4,860,000

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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Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,130 per unit; variable
cost = $350 per unit; fixed costs = $4.86 million; quantity = 76,000 units. Suppose the company believes all of its estimates are
accurate only to within 116 percent. What values should the company use for the four variables given here when it performs its best-
case and worst-case scenario analysis?
Note: Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest
whole number, e.g., 1,234,567.
Scenario
Base case
Best case
Worst case
Unit Sales
Unit Price
76,000 $
Unit Variable Cost
350
1,130 S
Fixed Costs
$4,860,000
Transcribed Image Text:Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,130 per unit; variable cost = $350 per unit; fixed costs = $4.86 million; quantity = 76,000 units. Suppose the company believes all of its estimates are accurate only to within 116 percent. What values should the company use for the four variables given here when it performs its best- case and worst-case scenario analysis? Note: Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Scenario Base case Best case Worst case Unit Sales Unit Price 76,000 $ Unit Variable Cost 350 1,130 S Fixed Costs $4,860,000
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