Investigating a multitude of what-if possibilities for the impact that simultaneous changes in fixed cost, variable cost, and/or volume have on profitability is commonly called sensitivity analysis. This statement is Multiple Choice true. false. Which of the following is not a tool used to conduct cost-volume-profit sensitivity analysis? Multiple Choice spreadsheet software algebraic equations. cost allocation. All of the choices represent tools used to conduct cost-volume-profit sensitivity analysis. O Thomas Co. buys and sells a product that has a variable cost per unit of $18. Thomas' fixed costs amount to $48.000. The product sells for $22 each. Thomas currently expects to make and sell 14,000 units. Management believes that if the price per unit is lowered by one dollar, the Company could sell an additional 3,000 units of product. If Thomas implements the lower price strategy, profitability will Multiple Choice increase by $8,000 decrease by $3,000. decrease by $5.000. increase by $2,000. Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper costs $5 and has a sales price of $9. The high-end model costs $9 and sales for $15. Fixed costs associated with this product line amount to $35,880. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Based on this information what is the total number of clippers that must be sold to earn a $12,420 profit? Multiple Choice O 10,500 clippers 7,350 clippers O O 3,150 clippers O None of the answers are correct. Clipper Company sells two types of nail clippers. One focuses on the economy oriented customer and the other aims to satisfy the high-end clientele. The economy clipper costs $5 and has a sales price of $9. The high-end model costs $9 and sales for $15. Fixed costs associated with this product line amount to $35,880. Economy clippers constitute 70 percent of the market with the remaining 30 percent being high-end clippers. Assume Clipper Company currently sells 10,500 units of clippers and earns a $12,420 profit. Management believes the profitability can be improved by shifting the sales mix to 60 percent share for the economy line and 40 percent for the high-end line. The company believes it can continue to sell a total of 10,500 under the new sales mix. If management is able to accomplish the shift in sales mix Multiple Choice profit will increase by $2,100. O profit will increase by $14.520 profit will decrease $12,420. profit will not be affected. O A company that has a sales mix that includes several products should strive to sell more of the product that has the highest per unit contribution margin even if that product has the lowest per unit sales price. This statement is Multiple Choice true. false
