The sensitivity analysis which interacts with break-even analysis. Introduction: The technique that is used to determine the value of a variable (independent) influencing another variable (dependent) under some set of assumptions is termed as sensitivity analysis. Break-even analysis refers to the point at which the company earns no profit and no loss. Simply the gain equals the loss.

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Chapter 7, Problem 8CQ

Summary Introduction

To discuss: The sensitivity analysis which interacts with break-even analysis.

Introduction:

The technique that is used to determine the value of a variable (independent) influencing another variable (dependent) under some set of assumptions is termed as sensitivity analysis.

Break-even analysis refers to the point at which the company earns no profit and no loss. Simply the gain equals the loss.

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