Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price $1,260 per unit; variable cost $480 per unit; fixed costs $4.99 million; quantity = 89,000 units. Suppose the company believes all of its estimates are accurate only to within ±22 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 Unit Sales Base case 89,000 $ Best case Worst case Unit Price Unit Variable Cost Fixed Costs 480 $ 4,990,000 1,260 $

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,260 per unit; variable
cost $480 per unit; fixed costs = $4.99 million; quantity = 89,000 units. Suppose the company believes all of its estimates are
accurate only to within ±22 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
Unit Sales
Unit Price
Base case
89,000 $
Unit Variable Cost
1,260 $
Fixed Costs
480
$ 4,990,000
Best case
Worst case
Transcribed Image Text:Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,260 per unit; variable cost $480 per unit; fixed costs = $4.99 million; quantity = 89,000 units. Suppose the company believes all of its estimates are accurate only to within ±22 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 Unit Sales Unit Price Base case 89,000 $ Unit Variable Cost 1,260 $ Fixed Costs 480 $ 4,990,000 Best case Worst case
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