Worst-case scenario analysis

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Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1613 per unit; variable costs = $321 per unit; fixed costs = $3856952; quantity = 74040 units. Suppose the company believes all of its estimates are accurate only within +/-20 percent. What is the company's EBIT when it performs its worst-case scenario analysis?

Reference no: EM131529101

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