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 $
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
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
Problem 1PS
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