8. (LO 8.7) Using the exhibit and description in Problem 7 above, evaluate the sensitivity of profits to changing levels of fixed costs and product sales price.

Required

a. Which has a greater impact on profitability, a $2 increase in sales price or a $250 decrease in total fixed costs?

b. How does conditional formatting help you to visualize the impact of these two important inputs on estimated profitability?

c. Would you recommend a different coloring scheme than the red-yellow-green scheme? Why or why not?

d. What other inputs do you think would be relevant to evaluate in assessing profitability?