ZuoTi.Pro
Question

Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $133...

Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $133 per unit; variable costs = $25 per unit; fixed costs = $39,864; quantity = 6,913 units. Suppose the company believes all of its estimates are accurate only within +/-19 percent. What is the company's EBIT when it performs its worst-case scenario analysis?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1 A B С D Existing Amount Worst Case Scenario Reason 2 Units 6913 5600 Units falling by 19% in this scenario.(6913-19% of 691604800 6 7 EBIT Calculation 8 Sales (5600*108) 9 Less: Variable cost(5600*30) 10 Less: Fixed cost 11 EBIT 168000 47438 389362

0 0
Add a comment
Know the answer?
Add Answer to:
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $133...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400...

    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? 15% Price accuracy Variable cost accuracy Fixed cost...

  • Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,000...

    Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,000 per unit; variable costs = $600 per unit; fixed costs = $1.8 million; quantity = 90,000 units. Suppose the company believes all of its estimates are accurate only to within ±20 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?

  • 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. 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? Scenario Units Sales Unit Price Unit Variable cost...

  • Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,240...

    Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,240 per unit; variable cost = $460 per unit; fixed costs = $4.97 million; quantity = 87,000 units. Suppose the company believes all of its estimates are accurate only to within ±20 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations and enter your answers in dollars,...

  • Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1.250...

    Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1.250 per unit: variable cost = $470 per unit: fixed costs = $4.98 million; quantity = 88.000 units. Suppose the company believes all of its estimates are accurate only to within 21 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round Intermediate calculations and enter your answers in dollars,...

  • 3. Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear assembly...

    3. Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear assembly project: price $1,700 per unit, variable costs $480 per unit; fixed costs = $4.1 million; quantity 95,000 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?

  • Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,220 pe...

    Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,220 per unit; variable cost = $440 per unit; fixed costs = $4.95 million; quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within ± 19 percent. Required: What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations. Enter your answers in...

  • help please Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price...

    help please Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,210 per unit; variable cost = $430 per unit; fixed costs = $4.94 million; quantity = 84,000 units. Suppose the company believes all of its estimates are accurate only to within +18 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations and enter your answers...

  • 7.7 a. (5 points) Default Transmissions, Inc., has the following estimates for its new gear assembly...

    7.7 a. (5 points) Default Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $140 per unit; fixed costs = $7 million; quantity = 80,000 units. Suppose the company believes all of its estimates are accurate only to within +25 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? b. (5 points) For...

  • Question 6 (of 19) 10.00 points Problem 11-3 Scenario Analysis [LO2 Sloan Transmissions, Inc., has the...

    Question 6 (of 19) 10.00 points Problem 11-3 Scenario Analysis [LO2 Sloan Transmissions, Inc., has the following estimates for its new gear assembly project price # $3,000 per unit variable costs $800 per unit, fixed costs $1.8 million; quantity 90,000 units. Suppose the company believes all of its estimates are accurate only to within 120 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?...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT