1 Sensitivity analysis is used to show how the financial model responds to changes in which of the following a any or all of its variables b fixed costs, only c variable costs, only d operating profit 2 What effect would an increase in the selling price of the product have on the break even point and the contribution margin Break even Point Contribution Margin a Increase Increase b Increase Decrease c Decrease Increase d Decrease Decrease 3 Which of the following statements is the correct calculation for the margin of safety in dollars a The excess of projected (or actual) sales dollars over the break even sales dollars b The excess of projected (or actual) sales price over the break even sales price c The excess of projected (or actual) cost of sales in dollars over the break even costs of sales in dollars level d None of the answers is correct

Question

1  Sensitivity analysis is used to show how the financial model responds to changes in which of the following  a  any or all of its variables  b  fixed costs, only  c  variable costs, only  d  operating profit  2  What effect would an increase in the selling price of the product have on the break even point and the contribution margin  Break even Point Contribution Margin a  Increase Increase b  Increase Decrease c  Decrease Increase d  Decrease Decrease 3  Which of the following statements is the correct calculation for the margin of safety in dollars  a  The excess of projected (or actual) sales dollars over the break even sales dollars  b  The excess of projected (or actual) sales price over the break even sales price  c  The excess of projected (or actual) cost of sales in dollars over the break even costs of sales in dollars level  d  None of the answers is correct

Accepted Answer

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a.	any or all of its variables.
b.	fixed costs, only.
c.	variable costs, only.
d.	operating profit.

a.	The excess of projected (or actual) sales dollars over the break-even sales dollars.
b.	The excess of projected (or actual) sales price over the break-even sales price.
c.	The excess of projected (or actual) cost of sales in dollars over the break-even costs of sales in dollars level.
d.	None of the answers is correct.

Question

1. Sensitivity analysis is used to show how the financial model responds to changes in which of the following? a. any or all of its

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a.	Increase Increase
b.	Increase Decrease
c.	Decrease Increase
d.	Decrease Decrease