When Performing Sensitivity Analysis,which of the Following Is an Example

question 115

Multiple Choice

When performing sensitivity analysis,which of the following is an example of a variable that management may consider changing to answer "what if" questions?

• A) Variable cost per unit
• B) Sales price per unit
• C) Fixed cost per unit
• D) Both variable cost per unit and sales price per unit are correct.

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Definitions:

Product Groupings

The categorization of products based on similarities in their characteristics, function, or target market.

Sales Goal

A specific, set target for the amount of sales that a company or individual aims to achieve within a certain time frame.

Volt

A unit of electric potential difference or electromotive force in the International System of Units (SI).

Markdowns

A reduction from the original or previous selling price of goods or services, often to clear inventory or boost sales.