Projected Financial Details:Income Statement Projections:Net Sales Forecast: $7,000,000Projected Expenses: $4,500,000Sensitivity Analysis:Scenario 1: 15% Increase in...

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Accounting

Projected Financial Details:

  • Income Statement Projections:
    • Net Sales Forecast: $7,000,000
    • Projected Expenses: $4,500,000
  • Sensitivity Analysis:
    • Scenario 1: 15% Increase in Sales
    • Scenario 2: 15% Decrease in Sales

Requirements:

  • Prepare a forecasted income statement.
  • Conduct a sensitivity analysis for the given scenarios.
  • Calculate the impact on net profit for each scenario.
  • Present the projections and sensitivity analysis in a detailed table format.
  • Discuss the strategic decisions based on the sensitivity analysis.
  • Evaluate the risks and opportunities presented by the sensitivity analysis.

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