Good evening Sir,
In question no3 of chapter's 10 practice questions to calculate the sensitivity why do we take the NPV/Contribution and not the NPV/Sales Revenue?
Sales revenue won't change as well once the sales volume's changed?
Thank you
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PRACTISE QUESTION OF INVESTMENT APPRAISAL UNDER UNCERTAINTY
7y ago#1If sales volume changes, then revenue and variable costs change i.e. the contribution will change.
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