Page 95 - 5.2 i. Manac Costing ITC Summarised Notes
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ITC EXAM PREP
Sensitivity Analysis
Selling price per unit: (let selling price per unit = x)
Profit = Sales – variable costs – fixed costs
0 = 15 000x – (450 x 15 000) – 800 000
7 550 000 = 15 000x
x = R503.33
Therefore the SP/unit can decrease by 44.1% (R900 – R503.33 / R900)
before a loss is incurred.
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