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If Sensitivity Analysis Concludes That the Largest Impact on Profits

Question 26

Multiple Choice

If sensitivity analysis concludes that the largest impact on profits would come from changes in the sales level,then:


A) fixed costs should be traded for variable costs.
B) variable costs should be traded for fixed costs.
C) the project should not be undertaken.
D) additional marketing analysis may be beneficial before proceeding.

Correct Answer:

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