Sensitivity Analysis

Sensitivity Analysis - Sensitivity Analysis

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Sensitivity Analysis A business environment can change quickly, so a business should understand how sensitive its  sales, costs, and income are to changes. CVP analysis using the break-even formula is often used  for this analysis. For example, marketing suggests a higher quality product would allow The Three  M's, Inc., to raise its selling price 10%, from $3.00 to $3.30. To increase the quality would increase  variable costs to $2.00 per unit and fixed costs to $350,000. If The Three M's, Inc., followed this 
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Sensitivity Analysis - Sensitivity Analysis

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