Sensitivity Analysis Name Box Sensitivity analysis is a "what if" proposition. It answers questions about...
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Accounting
Sensitivity Analysis Name Box Sensitivity analysis is a "what if" proposition. It answers questions about what may happen if major assumptions change or if certain predicated events do not occur. The "what if" feature allows the manager to plan for a variety of possibilities in different scenarios. As the manager of the Radiology Department, here are the assumptions: 1 There are 400X Rays completed and generate revenue of $75 each. 2 Variable costs amount to $45 per x-ray. 3 Fixed Costs equal $2,200 A. What is the Contribution Margin? B. What is the Operating Income? Revenue Variable Cost Contribution Margin Fixed Costs Operating Income Target Operating Income
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