HE FOLLOWING INFORMATION APPLIES TO QUESTIONS 15 to 17.

Martha Manufacturing produces a single product that sells for $45. Variable costs per unit equal $27. The company expects total fixed costs to be $72,000 for the next month at the projected sales level of 5,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.

15. What is the percentage sensitivity of the variable cost of the product?

a.0.133 %

b.1.33%

c.13.33%

d.Cannot be computed