Problem 11-3 Scenario Analysis [LO2] Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,300 per unit; variable costs = $460 per unit; fixed costs = $4.2 million; quantity = 76,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Scenario Base Best Worst Unit Sales Unit Price Unit Variable cost Fixed Costs

Problem 11-3 Scenario Analysis [LO2] Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,300 per unit; variable costs = $460 per unit; fixed costs = $4.2 million; quantity = 76,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Scenario Base Best Worst Unit Sales Unit Price Unit Variable cost Fixed Costs

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Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

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