Sensitivity analysis allows managers to see how various business strategies will affect profit levels.

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Quizplus · Accepted Answer

Sensitivity analysis is a tool used by managers to determine how changes in various factors, such as sales volume or cost of production, will impact their profits. By analyzing various scenarios and possible outcomes, managers can make informed decisions about which strategies to pursue in order to maximize profits. Therefore, the statement is true.

Sensitivity Analysis Allows Managers to See How Various Business Strategies