Question: Scenario Analysis Rollo Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,600 per unit; variable costs = $180 per

Scenario Analysis Rollo Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,600 per unit; variable costs = $180 per unit; fixed costs = $5.5 million; quantity = 110,000 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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