Question: Ch. 9 Homework A Saved Help Save & Exit Submit ID JLCIURUS LALE FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In 2

 Ch. 9 Homework A Saved Help Save & Exit Submit ID

Ch. 9 Homework A Saved Help Save & Exit Submit ID JLCIURUS LALE FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In 2 X Calibri 11 - A A % - Paste A Cells Alignment Number Conditional Format as Formatting - Table - Styles - Styles Clipboard Font 12.5 points C1 f A Skipped B D E F G H 1 eBook 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 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? Print 3 4 5 References 6 Price accuracy Variable cost accuracy Fixed cost accuracy Quantity accuracy 15% 15% 15% 15% 7 8 9 10 11 Complete the following analysis. Do not hard code values in your calculations. 12 13 14 15 Unit sales 85,000 $ Unit Price Unit variable cost 1,400 $ 220 $ Scenario Base case Best case Worst case Fixed costs 3,900.000 16 17 18 19 Ch. 9 Homework A Saved Help Save & Exit Submit ID JLCIURUS LALE FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In 2 X Calibri 11 - A A % - Paste A Cells Alignment Number Conditional Format as Formatting - Table - Styles - Styles Clipboard Font 12.5 points C1 f A Skipped B D E F G H 1 eBook 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 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? Print 3 4 5 References 6 Price accuracy Variable cost accuracy Fixed cost accuracy Quantity accuracy 15% 15% 15% 15% 7 8 9 10 11 Complete the following analysis. Do not hard code values in your calculations. 12 13 14 15 Unit sales 85,000 $ Unit Price Unit variable cost 1,400 $ 220 $ Scenario Base case Best case Worst case Fixed costs 3,900.000 16 17 18 19

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