Assume Only the Specified Parameters Change in a Sensitivity Analysis

question 50

Multiple Choice

Assume only the specified parameters change in a sensitivity analysis.If the contribution margin increases by $10 per unit then operating profits will:

• A)also increase by $10 per unit.
• B)increase by less than $10 per unit.
• C)decrease by $10 per unit.
• D)be indeterminable.

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