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.

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Definitions:

Trigonal Pyramidal

A molecule shape where a central atom is surrounded by three atoms at the corners of a pyramid, which has a triangular base.

Central Atom

The atom in a molecule or polyatomic ion that is surrounded by other atoms, forming the basis of the molecule's geometry.

Tetrahedral

Tetrahedral refers to a molecular shape where a central atom is surrounded by four other atoms at the corners of a tetrahedron.

Equivalent Atoms

Equivalent atoms are atoms in a molecule that have identical bonding arrangements and environment, making them indistinguishable in chemical reactions.