Use the figure for the question(s) below.

-A consumer good company is developing a new brand of organic toothpaste. Above is the sensitivity analysis for this product. Which parameter should be scrutinised most carefully in the estimation process?

Question

Use the figure for the question(s) below.

-A consumer good company is developing a new brand of organic toothpaste. Above is the sensitivity analysis for this product. Which parameter should be scrutinised most carefully in the estimation process?

Quizplus · Accepted Answer

The cost of goods is the parameter with the highest level of sensitivity. Any slight increase in the cost of goods will directly impact the profitability of the product. Therefore, it should be scrutinized most carefully in the estimation process.

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