Respond that the following statements are TRUE or FALSE:

1) Sensitivity analysis allows managers to see how various business strategies will affect profit levels.

2) Sensitivity analysis empowers managers with better information for decision making by analyzing how various business strategies will affect profits earned by the company.

3) Managers can use CVP relationships to conduct sensitivity analysis.

4) When the variable cost per unit decreases, the contribution margin on each unit sold also decreases.

5) When the variable cost per unit increases, the total number of units required to breakeven also increases.