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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?

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Everything goes up by respective percentages.

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%.

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%.

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%.

Everything goes down by respective percentages.

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