Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,080 per unit; variable cost = $300 per unit; fixed costs = $4.81 million; quantity = 71,000 units. Suppose the company believes all of its estimates are accurate only to within ±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 and enter your answers in dollars, not million, rounded to the nearest whole number, e.g., 1,234,567.)
Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,080 per unit; variable cost = $300 per unit; fixed costs = $4.81 million; quantity = 71,000 units. Suppose the company believes all of its estimates are accurate only to within ±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 and enter your answers in dollars, not million, 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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Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,080 per unit; variable cost = $300 per unit; fixed costs = $4.81 million; quantity = 71,000 units. Suppose the company believes all of its estimates are accurate only to within ±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 and enter your answers in dollars, not million, rounded to the nearest whole number, e.g., 1,234,567.)
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