What values should the company use for the four variables


Question - Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,190 per unit; variable cost = $410 per unit; fixed costs = $4.92 million; quantity = 82,000 units. Suppose the company believes all of its estimates are accurate only to within 20 %. 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). Scenario Unit Sales Unit Price Unit Variable Cost Fixed Costs Base case 82,000 $ 1,190 $ 410 $ 4,920,000.

Solution Preview :

Prepared by a verified Expert
Corporate Finance: What values should the company use for the four variables
Reference No:- TGS01141978

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)