Assume Only the Specified Parameters (That Is, Variables) Change in a Sensitivity

question 57

Multiple Choice

Assume only the specified parameters (that is, variables) change in a sensitivity analysis. If the contribution margin increases by $2 per unit, then operating profits will:

• A) Also increase by $2 per unit.
• B) Increase by less than $2 per unit.
• C) Decrease by $2 per unit.
• D) Increase, but by an indeterminate amount.
• E) Decrease, but by an indeterminate amount.

---

Definitions:

Victoria

A state in the southeastern part of Australia known for its capital, Melbourne, and as a hub for culture and sports.

Halifax

The capital of the Canadian province of Nova Scotia, known for its maritime history.

Third Gender

(1) A person who does not identify with the traditional genders of “man” or “woman,” but identifies with a third gender; (2) the gender category available in societies that recognize three or more genders.

Genderqueer

A blanket term used to describe people whose gender falls outside of the gender binary; a person who identifies as both a man and a woman, or as neither a man nor a woman; often used in exchange with transgender.