Problem 11-3 Scenario Analysis [LO2] Olin Transmissions, Inc., has the following

Question

Problem 11-3 Scenario Analysis [LO2]

Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit; fixed costs = $3.9 million; quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within

Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit; fixed costs = $3.9 million; quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within

Explanation / Answer

SCEnerio units sale unit price unit VC Fixed cost (million) Base 8500 1400 220 3.9 best 9775 1610 253 4.485 worst 7225 1190 187 3.315

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