Assume there are 4 variables in a sensitivity analysis: (1) Units expected to be sold with a possible variation of +/- 1
Posted: Tue Jan 18, 2022 12:58 pm
Assume there are 4 variables in a sensitivity analysis:
(1) Units expected to be sold with a possible variation of +/-
15%
(2) Expected unit selling price with a possible variation of +/-
5%
(3) Expected unit variable costs with a possible variation of
+/- 10%
(4) Expected annual fixed costs with a possible variation of +/-
3%
Which of the following combinations would eventuate in the
best-case scenario?
Group of answer choices
Everything goes up by respective percentages.
Number of units expected to be sold goes up by 15%; unit selling
price goes up by 5%; expected unit variable cost goes up by 10%,
and expected annual fixed costs goes down by 3%.
Number of units expected to be sold goes up by 15%; unit selling
price goes down by 5%; expected unit variable cost goes up by 10%,
and expected annual fixed costs goes down by 3%.
Units expected to be sold goes up by 15%; expected unit selling
price goes up by 5%; expected unit variable costs go down by 10%;
and expected annual fixed costs go down by 3%.
Everything goes down by respective percentages.
(1) Units expected to be sold with a possible variation of +/-
15%
(2) Expected unit selling price with a possible variation of +/-
5%
(3) Expected unit variable costs with a possible variation of
+/- 10%
(4) Expected annual fixed costs with a possible variation of +/-
3%
Which of the following combinations would eventuate in the
best-case scenario?
Group of answer choices
Everything goes up by respective percentages.
Number of units expected to be sold goes up by 15%; unit selling
price goes up by 5%; expected unit variable cost goes up by 10%,
and expected annual fixed costs goes down by 3%.
Number of units expected to be sold goes up by 15%; unit selling
price goes down by 5%; expected unit variable cost goes up by 10%,
and expected annual fixed costs goes down by 3%.
Units expected to be sold goes up by 15%; expected unit selling
price goes up by 5%; expected unit variable costs go down by 10%;
and expected annual fixed costs go down by 3%.
Everything goes down by respective percentages.