When you apply the highest sales price and the lowest costs in a project analysis, you are constructing:
A) A best case scenario.
B) A base case scenario.
C) A worst case scenario.
D) A sensitivity to ﬁxed costs.
E) A sensitivity to sales quantity.

Question

Quizplus · Accepted Answer

When you apply the highest sales price and the lowest costs, you are assuming the most favorable conditions for the project. This is known as a best case scenario.

When You Apply the Highest Sales Price and the Lowest