A company wants to release a new product. They are considering the profit in case they...

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A company wants to release a new product. They are considering the profit in case they release the book. The profit depends on number of sold products, per product price and per product cost. The lower bound, base value and upper bound for each parameter are as follows: Lower Bound Base Value Upper Bound Number Sold Per Unit Price Per Unit Cost 500 10 5 1500 20 10 5000 30 15 The company wants a profit of 10000 in order to have it as a viable product. Draw a tornado diagram to find out which of the parameters are more critical and needs further analysis. Report these parameters. b) Make a two way sensitivity analysis for number sold and per unit price to find out the joint values for which releasing the product is viable. A company wants to release a new product. They are considering the profit in case they release the book. The profit depends on number of sold products, per product price and per product cost. The lower bound, base value and upper bound for each parameter are as follows: Lower Bound Base Value Upper Bound Number Sold Per Unit Price Per Unit Cost 500 10 5 1500 20 10 5000 30 15 The company wants a profit of 10000 in order to have it as a viable product. Draw a tornado diagram to find out which of the parameters are more critical and needs further analysis. Report these parameters. b) Make a two way sensitivity analysis for number sold and per unit price to find out the joint values for which releasing the product is viable.

Answer rating: 100% (QA)

Answer Step 1 Sensitivity analysis This helps in determining how a dependent variable is affected du... View the full answer