Question: master tech is a new software company that develops and markets productivity software for government applications. The following is used when developing a balance sheet:

master tech is a new software company that develops and markets productivity software for government applications. The following is used when developing a balance sheet: Gross profit = Net sales - Cost of sales net operating profit = Gross profit - administrative expenses - sales expenses sales costs = fixed costs + variable costs Net profit before taxes = Net operating profit - interest Net income = Net profit before taxes - Taxes Net sales are evenly distributed between $ 600,000 and $ 1,200,000. The cost sales are normally distributed, averaging $ 540,000 and a standard deviation of $ 20,000. Expenses sales have a fixed item that is evenly distributed between $ 75,000 and $ 110,000. The variable is estimated at 7% of net sales. Administrative costs follow. Develop a net income risk study using Crystal Ball and make a written report to the administration. The study must includes the following.

c) perform the sensitivity analysis to determine the contribution of each risk factor to net profit. Comment on the size and sign (+ h -) of each risk factor affects net profit.

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