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sensitivity analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › sensitivity analysis

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • August 19, 2022 at 3:33 pm #663633
    Anonymous
    Inactive
    • Topics: 28
    • Replies: 15
    • ☆

    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?

    August 19, 2022 at 4:14 pm #663677
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    Before tax.

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