Question: Sensitivity Analysis Assignment Sensitivity analysis is essential to the new entrepreneur because it provides an examination of positive and negative scenarios. It also provides a

Sensitivity Analysis Assignment

Sensitivity analysis is essential to the new entrepreneur because it provides an examination of positive and negative scenarios. It also provides a strong sense of judgment to reveal how sensitive the firm would be to fluctuations in cash flow.

1 .

A company notices that the gross profit

(

sales minus cost of goods sold

)

has been decreasing. What should the company review to find the problem?

2 .

What factors should a company review if the company is considering a price increase?

3 .

What factors should a company review if the company is considering an expansion?

4 .

What factors should a company review if the company is considering moving to a different location?

Submit your responses to the numbered questions by Sunday, November

5, 2023

11

59

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