If Sensitivity Analysis Concludes That the Largest Impact on Profits

question 26

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.

---

Definitions:

Cabinet

A group of advisors or ministers chosen by the head of a country to head executive departments and assist in governance.

Mutual Aid

A voluntary reciprocal exchange of resources and services for mutual benefit among a group of people.

Socialization Group

A group formed for the purpose of learning social norms, values, and behaviors.

Support Group

A gathering of individuals who share common experiences or challenges, offering each other advice, empathy, and encouragement.