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Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,600...

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Finance

Sloan Transmissions, Inc., has the following estimates for itsnew gear assembly project: price = $1,600 per unit; variable costs= $320 per unit; fixed costs = $2.7 million; quantity = 78,000units. Suppose the company believes all of its estimates areaccurate only to within ±10 percent. What values should the companyuse for the four variables given here when it performs itsbest-case scenario analysis? What about the worst-casescenario?

  

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Best case scenario analysis In a best case scenario sales price would be highest Sales price to use 1600 1 10 1760 per unit In a best case scenario variable cost    See Answer
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Sloan Transmissions, Inc., has the following estimates for itsnew gear assembly project: price = $1,600 per unit; variable costs= $320 per unit; fixed costs = $2.7 million; quantity = 78,000units. Suppose the company believes all of its estimates areaccurate only to within ±10 percent. What values should the companyuse for the four variables given here when it performs itsbest-case scenario analysis? What about the worst-casescenario?  

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