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  3. 6. sensitivity analysis using different variables.

6. Sensitivity analysis using different variables. For this section try to summarize the items in...

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Accounting

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6. Sensitivity analysis using different variables. For this section try to summarize the items in the income statement; i.e., product costs, other variable costs, fixed costs and depreciation. By doing so, projecting the report will be easier. Consider the objectives of the business and determine the impact that changes in some of the variables would have on the bottom line of the business. Using the income statement, apply a 20% increase in sales volume or 10% increase in variable costs or increase in fixed costs due to inflation. Would all cost be affected by inflation? Consider the impact of each variable independently. You must build on your own assumptions

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