Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $860 per
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Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $860 per unit; variable cost = $320 per unit; fixed costs = $3.4 million; quantity = 60,000 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?
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Related Book For
Essentials of Corporate Finance
ISBN: 978-0078034756
8th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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