When performing a sensitivity analysis, if the selling price per unit is increased, then the ________.
A) per unit fixed administrative costs will increase
B) per unit direct materials purchase price will increase
C) total volume of sales will increase
D) total costs for sales commissions and other nonmanufacturing variable costs will increase

Question

Quizplus · Accepted Answer

Increasing the selling price per unit will likely increase the variable costs associated with sales commissions and other nonmanufacturing costs, as these costs are often directly tied to sales revenue. None of the other answer choices are necessarily affected by a change in the selling price per unit.

When Performing a Sensitivity Analysis, If the Selling Price Per