If Sensitivity Analysis Concludes That the Largest Impact on Profits

question 105

Multiple Choice

If sensitivity analysis concludes that the largest impact on profits would come from changes in the sales level, then:

• A)Fixed costs should be traded for variable costs
• B)Variable costs should be traded for fixed costs
• C)The project should not be undertaken
• D)Additional marketing analysis may be beneficial before proceeding

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Definitions:

Dissatisfaction

A feeling of unhappiness or discontentment with an aspect of one’s job or working environment.

Working Conditions

The environment in which an individual works, including aspects like safety, hours, physical demands, and the psychological atmosphere.

Employee Association

An organization of workers formed to promote their collective interests, rights, and well-being within the workplace.

White-Collar Employees

Workers who perform job duties in an office or other professional setting, often involving administrative, clerical, or managerial tasks, as opposed to blue-collar workers who perform manual labor.