Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $ 1,250 per unit; variable cost = $470 per unit; fixed costs = $4.98 million; quantity = 88,000 units. Suppose the company believes all of its estimates are accurate only to within \pm 21 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.

Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $ 1,250 per unit; variable cost = $470 per unit; fixed costs = $4.98 million; quantity = 88,000 units. Suppose the company believes all of its estimates are accurate only to within \pm 21 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.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter5: Probability: An Introduction To Modeling Uncertainty

Section: Chapter Questions

Problem 29P: The Siler Construction Company is about to bid on a new industrial construction project. To...

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