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Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,100...

Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,100 per unit; variable costs = $620 per unit; fixed costs = $4.4 million; quantity = 92,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent? Scenario Units Sales Unit Price Unit Variable cost Fixed Costs Base $ $ $

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Unit Sales Unit Price Unit VC Fixed Cost
Scenario Calculation Units Calculation $ Calculation $ Calculation $
Base $       92,000 $       3,100 $        620 $       4,400,000
Best 92000+15% $     105,800 3100+15% $       3,565 620-15% $        527 4400000-15% $       3,740,000
Worst 92000-15% $       78,200 3100-15% $       2,635 620+15% $        713 4400000+15% $       5,060,000

ekkarill92 answered 2 years ago
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