Sensitivity analysis asks what happens to the output if there is a small change in the input.
Fantastic news! We've Found the answer you've been seeking!
Question:
Sensitivity analysis asks what happens to the output if there is a small change in the input.
Consider a break-even model where the fixed cost is $650,000, units sell for $3.98, and the variable cost of a unit is $1.77. Suppose that the selling price increases by 10%. By how much do the break-even sales change?
Decrease by 15.26%
Decrease by 15.02%
Decrease by 15.45%
Decrease by 13.01%
Posted Date: