Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $146 per unit; variable costs = $30 per unit; fixed costs = $41709; quantity = 7482 units. Suppose the company believes all of its estimates are accurate only within +/-20 percent. What is the company's EBIT when it performs its best-case scenario analysis? (Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
Best case EBIT = (sales units*(1+accuracy rate)*(sales price*(1+accuracy rate)-variable cost*(1-accuracy rate))-Fixed cost*(1-accuracy rate)
=(7482*(1+0.2)*(146*(1+0.2)-30*(1-0.2))-41709*(1-0.2)
=1324167
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $146...
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