Question: Sensitivity Analysis Q 2 . Currently, you sell 4 0 , 0 0 0 units of a product for $ 6 0 each. The unit

Sensitivity Analysis
Q2. Currently, you sell 40,000 units of a product for $60 each. The unit variable cost of production is $15. The fixed cost is $400,000. You are thinking of cutting the product price by 25%. You are sure this will increase the sale by an amount from 10 percent to 50 percent (use 10,15,20,25,30,35,40,45, and 50%). Perform a senstivity analysis to show how profit will change as a function of the percentage increase in sales? (20 points)
 Sensitivity Analysis Q2. Currently, you sell 40,000 units of a product

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