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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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