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Which One of the Following Describes Sensitivity Analysis in the Context

Question 11

Multiple Choice

Which one of the following describes sensitivity analysis in the context of break-even point?


A) Enables us to determine how far our sales can fall before we reach break-even point.
B) Enables us to determine the profit or loss from any given level of sales.
C) Enables us to calculate the level of sales required to achieve a given level of profit.
D) Enables us to decide whether it is more cost effective to buy goods and services from external parties or to produce or deliver those goods and services within the organization.

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