The manufacturer of a brand of kitchen knives is investigating the likely effects that an increase in the cost of the raw materials required to make these knives will have on the cost of manufacturing the knives, the selling price of the knives, the number of knives that will then be sold, and the projects net present value (NPV). Which of the following best describes what type of analysis the manager is performing?

CAPITAL BUDGETING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The manufacturer of a brand of kitchen knives is investigating the likely effects that an increase in the cost of the raw materials required to make these knives will have on the cost of manufacturing the knives, the selling price of the knives, the number of knives that will then be sold, and the project’s net present value (NPV). Which of the following best describes what type of analysis the manager is performing?

A	scenario analysis
B	sensitivity analysis
C	break-even analysis
D	EBIT-break even analysis

Explanation:

Detailed explanation-1: -Types of Handle Materials Used for Kitchen Knives. Knife handles can be made of wood, aluminum, titanium, bone, carbon fiber, stainless steel, Micarta®, Garolite (G-10 grade), FRN/ZYTEL® and other similar variations.

Detailed explanation-2: -The most important are: Stainless steel, Carbon steel and Ceramic. Hardness and quality of material. Hard steel or ceramic materials ensure longer sharpness. Solid and comfortable finger guard, to improve safety when working hours with your knife.

There is 1 question to complete.

ECONOMICS

COST ACCOUNTING

CAPITAL BUDGETING