Question
Assume there are 4 variables in a sensitivity analysis: (1) Units expected to be sold with a possible variation of +/- 15% (2) Expected unit
Assume there are 4 variables in a sensitivity analysis:
(1) Units expected to be sold with a possible variation of +/- 15%
(2) Expected unit selling price with a possible variation of +/- 5%
(3) Expected unit variable costs with a possible variation of +/- 10%
(4) Expected annual fixed costs with a possible variation of +/- 3%
Which of the following combinations would eventuate in the best-case scenario?
Group of answer choices
Everything goes up by respective percentages.
A)Number of units expected to be sold goes up by 15%; unit selling price goes up by 5%; expected unit variable cost goes up by 10%, and expected annual fixed costs goes down by 3%.
B)Number of units expected to be sold goes up by 15%; unit selling price goes down by 5%; expected unit variable cost goes up by 10%, and expected annual fixed costs goes down by 3%.
C)Units expected to be sold goes up by 15%; expected unit selling price goes up by 5%; expected unit variable costs go down by 10%; and expected annual fixed costs go down by 3%.
D)Everything goes down by respective percentages.
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