Sensitivity analysis: Sensitivity analysis aims at evaluating the changes in the dependent variable with a change in the value of independent variable. Budgeted Income Statement : The financial statement which concerned with revenue and expenses of a business during the budgeted period is called a budgeted income statement. To determine : 1. Prepare budgeted income statements for both alternatives of Soya. 2. Recommend which alternative should Soya choose and explain.

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Chapter 22, Problem P22.43APGA

To determine

Sensitivity analysis:

Sensitivity analysis aims at evaluating the changes in the dependent variable with a change in the value of independent variable.

Budgeted Income Statement:

The financial statement which concerned with revenue and expenses of a business during the budgeted period is called a budgeted income statement.

To determine:

1. Prepare budgeted income statements for both alternatives of Soya.

2. Recommend which alternative should Soya choose and explain.

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