Question: Problem 11-3 Scenario Analysis [LO2] Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price $1,200 per unit; variable costs$240 per
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Problem 11-3 Scenario Analysis [LO2] Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price $1,200 per unit; variable costs$240 per unit; fixed costs - $2.6 million; quantity 70,000 units. Suppose the company believes all of its estimates are accurate only to within 10 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? Unit Variable cost Scenario Base Worst Units Sales Unit Price Fixed Costs
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