Question: What does sensitivity analysis do? Group of answer choices A. It shows how profit changes when variables such as contribution margin and breakeven point change
What does sensitivity analysis do?
Group of answer choices
A. It shows how profit changes when variables such as contribution margin and breakeven point change
B. It shows how profit changes when variables such as fixed costs, variable costs, sales price, or sales amounts change.
C. It shows how contribution margins change when exogenous variables, such as income, taxation, fiscal policy and monetary policy, change.
D. It shows how the contribution margin changes when internal variables such as fixed costs, variable costs, sales price, or sales amounts change.
Step by Step Solution
There are 3 Steps involved in it
Sensitivity Analysis Overview Sensitivity analysis is a technique used to understand how different v... View full answer
Get step-by-step solutions from verified subject matter experts
