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Unformatted text preview: the variable cost. The average contribution margin will be slightly different with the separate contribution margins of each product because of the rounding off factor. 5. This type of analysis is vital for testing if the result remains the same when certain variables are altered. Certain assumptions are made on Bill Frenchs first computations. In reality, the companys decisions changes and this change brings about different result. Therefore, performing sensitivity analysis on important variables is very vital in companys decision making processes....
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This note was uploaded on 05/19/2011 for the course IE 2 taught by Professor A during the Spring '11 term at University of the Philippines Diliman.
- Spring '11