Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear assembly project: price = $1,700 per unit; variable costs = $480 per unit; fixed costs = $4.1 million; quantity = 95,000 units. Suppose the company believes all of its estimates are accurate only to within ±15%. 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hello,

Please, I need help solving this problem(11.3).

Please give me as many details as you can.

Thank you,

3. Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following
estimates for its new gear assembly project: price = $1,700 per unit; variable costs =
$480 per unit; fixed costs = $4.1 million; quantity = 95,000 units. Suppose the
company believes all of its estimates are accurate only to within ±15%. 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?
Transcribed Image Text:3. Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear assembly project: price = $1,700 per unit; variable costs = $480 per unit; fixed costs = $4.1 million; quantity = 95,000 units. Suppose the company believes all of its estimates are accurate only to within ±15%. 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?
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can you recheck the values i think you mixed up between both scenarios and I prefer by exccel table the answers will be

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