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If a 20 Percent Reduction in Forecast Sales Would Not

Question 46

Multiple Choice

If a 20 percent reduction in forecast sales would not extinguish a project's profitability, then sensitivity analysis would suggest:


A) de-emphasizing that variable as a critical factor.
B) requiring a more detailed sales forecast.
C) the initial sales forecasts were inflated.
D) a reallocation of fixed costs to this product.

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