Question: Scenario Analysis. Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price $960 per unit; variable cost $350 per unit; Fxed
Scenario Analysis. Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price $960 per unit; variable cost $350 per unit; Fxed costs $3.6 million; quantity 55,000 units. Suppose the company believes all of its estimates are accurate only to within plus/minus 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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