Value: 1 Sensitivity analysis compares different combination of assumptions. Based on the screenshot below, what would you do if the price elasticity changes to 100 more products sold at every $10 price cut (hint: The current price of $150 leads to the sales of 1000 products, generating $40000 profit on the diagonal of the matrix obtained from what-if analysis). a. Reduce price b. Increase price O c. Do not change price Check Answer B D E F H J 1 Assumptions 2 Products sold 3 Price 4 Cost 5 Store Rent 1000 60000 50000 1100 72000 61000 50000 6 Payroll 1200 84000 72000 60000 48000 36000 40000 12000 39000 1,000 Products sold $150 Price $40,000 800 900 $50 $170 36000 48000 $10,000 $160 28000 39000 $50,000 $150 20000 30000 $140 21000 4000 12000 $150,000 $50,000 $100,000 $60,000 *Selling, general and admininistrative expenses $40,000 30000 20000 $130 8 Profit/Loss 9 Revenue 10 Cost of sales 11 Gross profit 12 SG&A 13 Operating profit 28000 Sensitivity Analysis Example (for the question above)