Question: Automatic transmissions, Inc., has the following estimates for its new gear assembly project; price = $1,280 per unit; variable costs = $340 per unit, fixed

Automatic transmissions, Inc., has the following estimates for its new gear assembly project; price = $1,280 per unit; variable costs = $340 per unit, fixed costs = $5.5 million; quantity = 80,000 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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