CIMA Advanced Management Accounting P2 Question # 21 Topic 3 Discussion

CIMA Advanced Management Accounting P2 Question # 21 Topic 3 Discussion

P2 Exam Topic 3 Question 21 Discussion:
Question #: 21
Topic #: 3

A positive net present value (NPV) has been calculated for a project to launch a new product. An additional calculation is required to identify the sensitivity of the NPV to changes in the forecast total sales volume.

The present value of which of the following would be used in the calculation?


A.

Contribution


B.

Operating profit


C.

Fixed overheads


D.

Net profit


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