If a 20 Percent Reduction in Forecast Sales Would Not

question 46

Multiple Choice

If a 20 percent reduction in forecast sales would not extinguish a project's profitability, then sensitivity analysis would suggest:

• A)de-emphasizing that variable as a critical factor.
• B)requiring a more detailed sales forecast.
• C)the initial sales forecasts were inflated.
• D)a reallocation of fixed costs to this product.

---

Definitions:

Volunteer Work

Unpaid work done willingly by individuals to benefit others or contribute to a community or cause without financial compensation.

Placement Opportunities

Chances or prospects available for a person to find employment or gain a specific position in organizations.

Economic Downturn

A period when the economy slows down, marked by reduced industrial activity, consumer spending, and employment rates.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.