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Please help me, answer it all please. Thankyou in advance! 25. DOL and sensitivity analysis. A business has the following standard profit or loss statement:
Please help me, answer it all please. Thankyou in advance!
25. DOL and sensitivity analysis. A business has the following standard profit or loss statement: Sales 10,000 units @P200 P 2,000,000 Variable costs 10,000 units@P120 (1,200,000) Fixed costs (400,000 Profit P 400,000 Consider the following questions independently. a. What is the DOL? b. If it wants to increase the profit by 400%, what would be the change in fixed costs? c. If it wants to increase the profit by 400%, what would be the change in unit sales price? d. If it wants to increase the profit by 100%, what would be the change in unit variable costs? e. If it wants to increase the profit by 400%, fixed costs would increase by 10%, and unit variable costs would increase by 20%, what would be the required change in volume? f. If it wants to increase the profit by 400% and fixed costs would increase by 10%, what would be the required change in volumeStep by Step Solution
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