Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,000 per unit; variable costs = $400 per unit; fixed costs = $2.8 million; quantity=86,000 units. Suppose the company believes all of its estimates are accurate only to within ±10 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 86,000 94,600 77,400 Answer is complete but not entirely correct. Unit Price Unit Variable cost 2,000 2,200 1,800 400 360 440 Fixed Costs 2,800,000 3,405,600X 3,080,000

Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,000 per unit; variable costs = $400 per unit; fixed costs = $2.8 million; quantity=86,000 units. Suppose the company believes all of its estimates are accurate only to within ±10 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 86,000 94,600 77,400 Answer is complete but not entirely correct. Unit Price Unit Variable cost 2,000 2,200 1,800 400 360 440 Fixed Costs 2,800,000 3,405,600X 3,080,000

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

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...

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