Globus Autos sells a single product.8,000 units were sold resulting in $80,000 of sales revenue,$20,000 of variable costs,and $10,000 of fixed costs.If a change is made in one parameter of CVP analysis,it is an example of ________.

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Sensitivity analysis involves changing one parameter in CVP analysis to determine its effect on profits. In this case, changing one parameter (such as the selling price or variable cost per unit) could impact the profits of Globus Autos. Incremental budgeting involves adjusting the budget based on changes in activity levels or prices, but it does not relate to CVP analysis. Variance analysis involves comparing actual costs to budgeted costs to analyze the differences, but it does not necessarily involve adjusting one parameter in CVP analysis. Multiple cost drivers involve considering multiple factors that affect costs, but this is not relevant to the scenario described.

Globus Autos Sells a Single Product