Assessment Test 1.a.1: Sensitivity Analysis

Preparation Step 1: Model with Revised Base Case

Some of the questions in this Assessment Test will require you to work with the profit model used in the text so far, which is shown again below. You should have already built the model by now!…if not, now is the time to do so!

Note that the “base case values” used in this example are different to those used in the text so far (notably the values for Variable Cost per Unit (cell C5) and Fixed Costs Overhead (cell C6) have the values of 2.0 and 2137 respectively).

Preparation Step 2: Running DataTables

Please complete the following DataTables BEFORE starting the quiz.

The first set of tables consists of two tables, each structured in the same way (where the final values and output reference cells are not yet shown), as shown immediately below. They are to be used to analysis the Revenue and the Profit as Price and Volume are varied.

21.20.20-4
21.10.20-5

You will also need a one-way table, which will be used to conduct sensitivity analysis of the Total Cost to the Variable Cost per Unit:

21.10.20-6

PLEASE NOTE: DUE TO THE IMPORTANCE OF THE SUBJECT, THE FOLLOWING QUIZ HAS AN 80% PASS MARK. SO YOU WILL NEED TO HAVE AT LEAST 6 ANSWERS OUT OF THE 7 QUESTIONS CORRECT. … SO PLEASE DO THE EXERCISE CAREFULLY!

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