Following a sensitivity analysis, it appears that the success of Project X depends on the actual cost
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Following a sensitivity analysis, it appears that the success of Project X depends on the actual cost of raw materials not exceeding 10 per cent of their projected cost. It also depends on the actual sales volume not being less than 10 per cent of the projected sales volume. Does this mean that raw material cost and sales volume represent areas of equal risk for Project X?
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No this does not necessarily mean that raw material cost and sales volume represent areas of equal risk for Project X The sensitivity analysis may hav...View the full answer
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Related Book For 
Accounting and Finance An Introduction
ISBN: 978-1292088297
8th edition
Authors: Peter Atrill, Eddie McLaney
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