Use the Figure for the Question(s) Below

question 15

Multiple Choice

Use the figure for the question(s) below.
-A consumer good company is developing a new brand of organic toothpaste. Above is the sensitivity analysis for this product. The assumptions regarding which parameter should be scrutinized most carefully in the estimation process?

• A) units sold
• B) sales price
• C) cost of goods
• D) cost of capital

---

Definitions:

Risk-Averse

A characteristic describing individuals or entities that prefer to avoid risks and favor more certain outcomes.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.

Utils Per Dollar

An economic concept used to measure the amount of utility or satisfaction a consumer receives per dollar spent.