3)

4) Please answer number 4 through excel with calculations provided. I only need the answer for question 4

3. Scenario Analysis [LO2] Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: Price = $1,440 per unit; variable costs = $460 per unit; fixed costs = $3.9 million, quantity = 85,000 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? Sensitivity Analysis [LO1] For the company in the previous problem, suppose management is most concerned about the impact of its price estimate on the project's profitability. How could you address this concern? Describe how you would calculate your answer. What values would you use for the other forecast variables? 4. Scenario Unit sales Unit price Unit variable cost Fixed costs Base 85,000 $1,440 $460 $3,900,000 Best 97,750 1,656 $391 $3,315,000 Worst 72,250 $1,224 $529 $4,485,000 3. Scenario Analysis [LO2] Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: Price = $1,440 per unit; variable costs = $460 per unit; fixed costs = $3.9 million, quantity = 85,000 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? Sensitivity Analysis [LO1] For the company in the previous problem, suppose management is most concerned about the impact of its price estimate on the project's profitability. How could you address this concern? Describe how you would calculate your answer. What values would you use for the other forecast variables? 4. Scenario Unit sales Unit price Unit variable cost Fixed costs Base 85,000 $1,440 $460 $3,900,000 Best 97,750 1,656 $391 $3,315,000 Worst 72,250 $1,224 $529 $4,485,000