If a 20 percent reduction in forecast sales would not extinguish a project's profitability, then sensitivity analysis would suggest:
A)de-emphasizing that variable as a critical factor.
B)requiring a more detailed sales forecast.
C)the initial sales forecasts were inflated.
D)a reallocation of fixed costs to this product.

Question

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If a 20% reduction in forecast sales would not extinguish a project's profitability, then sensitivity analysis suggests that the variable is not a critical factor. Therefore, de-emphasizing the variable would be a logical choice.

If a 20 Percent Reduction in Forecast Sales Would Not