Solved

Use the Information Below to Answer the Following Questions

Question 37

Multiple Choice

Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016. Use the information below to answer the following questions. Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016.   Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale 40 per cent in the month following the sale -Which question can be answered by using sensitivity analysis? A)  What if sales price is reduced by $10 per unit? B)  What if the credit period taken from suppliers is extended from one month to two months? C)  What if sales volume is 6% higher than expected? D)  All the questions can be answered. Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-Which question can be answered by using sensitivity analysis?


A) What if sales price is reduced by $10 per unit?
B) What if the credit period taken from suppliers is extended from one month to two months?
C) What if sales volume is 6% higher than expected?
D) All the questions can be answered.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions