ocr: Sensitivity Analysis Subsequent to the preparation of these budgets the sales manager provides the following updated information to the management accountant: Expected Worst Best Sales Volumes Sales Volumes Scenario Scenario R/B Gears 500 450 550 M/B Gears 1,000 900 1,100 Custom Gears 750 675 825 Expected Worst Best Selling Prices Selling Prices Scenario Scenario R/B Gears E50 E40 E60 M/B Gears E60 E48 E72 Custom Gears E70 E56 E84 This means that the management accountant has as yet only drawn up the subsidiary budgets based on the expected level of sales volumes and selling prices. You should ...
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