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    sensitivity analysis

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    Determine the break even point and present worth on the cost of good sold. Thank you.

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    Solution Preview

    I have attached an excel spreadsheet.

    For the first part of the sensitivity analysis, look at the equation in the Cost of Goods Sold box D15 through M15. The equation takes the negative 67% of the sales revenue. In order to conduct the sensitivity analysis on 60%, 65%, and 70%, change the value in all of these boxes and observe the change in present worth in box C26.
    To see what I mean, look at Sheet 2 of the document, where I changed the values to 65%, and the present worth ...

    Solution Summary

    This posting presents sensitivity analysis clearly.