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If a firm's sales estimate used in its base case analysis is 1,000 units per year and they anticipate the upper and lower bounds to be +/- 15%, What is the "best case" for units sold per year?

Respuesta :

Answer:

1,150 units

Explanation:

Data given in the question

Estimated firm sales used in its base case analysis = 1,000 units

upper and the lower bonds = +/-15%

So, the best case for units sold per year is

= Estimated firm sales used in its base case analysis +  Estimated firm sales used in its base case analysis  × upper and the lower bonds

= 1,000 units + 1,000 units × 15%

= $1,000 units + 150 units

= 1,150 units