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:

Social Change

The significant alteration of social structure and cultural patterns through time.

Demographic Factors

Characteristics of a population used in social science studies, such as age, gender, income level, education, and ethnicity.

Political Regime

The form of government or a set of rules, cultural or social norms, that regulate the operation of a government or institution and its interactions with society.

Proselytizing

The act of attempting to convert someone to another religion or belief system.