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t. Sensiditty analyses: Prepare sensitivity analyses to examine how robust year 1 results are to changes in projections for (1) the sales volume of cases,

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t. Sensiditty analyses: Prepare sensitivity analyses to examine how robust year 1 results are to changes in projections for (1) the sales volume of cases, (2) che seles price per bag, and (3) the cost per pound of chicken. Assume that these amounts can change for three different projection levels es reported in Table 2: (1le pessimistic level, (2) the original level. and (3) an optimistic level. Table 2 shows that the sales volume ( in cases) will be 75% of the original year 1 sales forecast, the sales price per bag will only be 90% of the original forecast (or $2.70/bug = $3.00/bag x 90%), and the cost per pound of chicken will rise to 112 509% of the original forecastlor $2.25 /1b. = $2.00/1b. x 112.509%) for the pessimistic level. The original level reports the results using the original projections in the case. Under the optimistic level, the sales volume forecast ( in cases) will be 12 5% of the original year 1 sales forecast, the sales price per bag will increase to 110% of the original forecastfor $3.30/bag = 53.00/ bag x 110%], and the cost per pound of chicken will decrease to 87.50% (or $1.75 /1b. = $2.00/1b. * 87.509%)

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