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.
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).)
Unit Variable Cost
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