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Module 5: Now please assume that the sales price (SP) of one case of Coca-Cola in the Indian market will be $4, variable costs (VC)
Module 5: Now please assume that the sales price (SP) of one case of Coca-Cola in the Indian market will be $4, variable costs (VC) per Coca-Cola case will be $2, and fixed costs (FC) of the plant will be $100,000 per month.
= $100,000 / ($4 - $2) = $100,000 / $2 = 50,000 units Break even point in units = 50,000 units
Can sensitivity analysis be useful for the Coca-Cola Company to have accurate cash flow (CF) forecasting? How?
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