Skip to content

Ask the Tutor ACCA PM

sensitivity analysis

Former userFormer user4y ago
This MCQ relates to sensitivity analysis. Sales revenue = 2000 Variable costs = (1300) Contribution = 700 Fixed costs = (450) Profit = $250 Profit is before-tax where the corporation tax is given at 20%. My question is that should we use the profit-before tax of $250 OR profit-after tax of $200 for the calculation of sensitivity analysis in paper PM?
John MoffatJohn MoffatTutor4y ago#1
Before tax.
Sign into reply to this topic.