Question: Sensitivity analysis asks what happens to the output if there is a small change in the input. Consider a break-even model where the fixed cost

Sensitivity analysis asks what happens to the output if there is a small change in the input.

Consider a break-even model where the fixed cost is $650,000, units sell for $3.98, and the variable cost of a unit is $1.77. Suppose that the selling price increases by 10%. By how much do the break-even sales change?

Decrease by 15.26%

Decrease by 15.02%

Decrease by 15.45%

Decrease by 13.01%

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