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Correct statements related to CVP Analysis ( select all that are considered correct ) : a . Sensitivity Analysis is used to examine how a
Correct statements related to CVP Analysis select all that are considered correct:
a Sensitivity Analysis is used to examine how a result will change if predictions change or underlying assumptions change
b Margin of Safety in units describes the safe limit of change in the event of a decrease in revenue and is calculated by: Target sales units Target units in Break Even conditions
c The higher the Degree of Operating Leverage, the lower the change in Operating Income when there is a change in the number of products sold from the target
d In the Sales Mix, the company wants products with a high Contribution Margin Percentage to sell more.
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