Question Details

(Solution Download) Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price


 

 

 

 

 

 

 

Automatic Transmissions, Inc., has the following estimates for

 

its new gear assembly project: price = $1,160 per unit; variable

 

cost = $380 per unit; fixed costs = $4.89 million; quantity =

 

79,000 units. Suppose the company believes all of its estimates are

 

accurate only to within A?± 15 percent.

 

 

 

 

 

 

 

 

 

 

 

Required:

 

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).)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ScenarioUnit

 

Sales

 

Unit Price

 

Unit Variable Cost

 

Fixed Costs

  Base case79,000

 

  

$1,160

 

  

$380

 

    

$4,890,000

 

  

  Best case

 

   

 

   

 

     

 

   

  Worst case

 

   

 

   

 

     

 

   

 


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