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5 July, 18:41

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?

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  1. 5 July, 19:01
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    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
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