Ch. 5 Cost-Volume-Profit-Analysis
Sensitivity Analysis
Ch. 5 Cost-Volume-Profit-Analysis
Sensitivity Analysis: Videos & Practice Problems
0
Concept
Sensitivity Analysis: Changing Price
Video duration:
4m0
Example
Sensitivity Analysis: Changing Price
Video duration:
1m0
Problem
Whenever a business lowers their sales price, we expect that their break-even point after the change will be:
A
Higher than the original break-even point.
B
The same as the original break-even point.
C
Lower than the original break-even point.
0
Problem
Fill in the blanks. D- Education is a private school that has \$1,000,000 in fixed costs per year and spends \$5,000 per student in variable costs. If their tuition is \$10,000 per year, their breakeven point would be ____________ and, if they raised their tuition to \$15,000 per year, their breakeven point would be ____________.
A
200 students; 200 students.
B
400 students; 200 students.
C
200 students; 100 students.
D
100 students; 50 students.
0
Concept
Sensitivity Analysis: Changing Variable Costs
Video duration:
3m0
Example
Sensitivity Analysis: Changing Variable Costs
Video duration:
1m0
Problem
Whenever a business’ variable costs rise, we expect that their break-even point after the change will be:
A
Higher than the original break-even point
B
The same as the original break-even point
C
Lower than the original break-even point
0
Problem
Fill in the blank. D- Education has \$1,000,000 in fixed costs per year and spends \$5,000 per student in variable costs. Their tuition is \$10,000 per year. If their variable costs increased to \$7,500 per student, their breakeven point would be ____________.
A
100 students
B
200 students
C
400 students
D
800 students
0
Concept
Sensitivity Analysis: Changing Fixed Costs
Video duration:
1m0
Example
Sensitivity Analysis: Changing Fixed Costs
Video duration:
1m0
Problem
Whenever a business’ fixed costs rise, we expect that their break-even point after the change will be:
A
Higher than the original break-even point.
B
The same as the original break-even point.
C
Lower than the original break-even point.
0
Problem
Fill in the blanks. Super Sweet Candy produces licorice at the costs given in the table. Their break-even point is ____________ and would change to ____________ if their fixed costs rose to \(15,000.
A
5,000 units; 7,500 units.
B
5,000 units; 10,000 units.
C
10,000 units; 7,500 units.
D
10,000 units; 10,000 units.
