Explain how sensitivity/scenario analysis can help

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Reference no: EM133931777

Problem

NutriSnack Ltd produces healthy snack bars. The company faces uncertain demand and is evaluating pricing, short-term orders, and risk management. Data for normal operations: Selling price = $4 per bar Variable cost = $2.50 per bar Fixed costs = $300,000 Expected sales = 200,000 bars Special order: 40,000 bars at $3 per bar No extra fixed costs.

1. Perform a CVP analysis: calculate contribution per unit, break-even sales units, and margin of safety at expected sales.

2. Evaluate whether the special order should be accepted, with supporting calculations. Get the instant assignment help.

3. Discuss two pricing methods NutriSnack could use for long-term strategy (e.g. cost-plus, value-based).

4. Identify two risks/uncertainties NutriSnack faces and explain how sensitivity/scenario analysis can help.

5. Recommend an approach to balance financial and non-financial factors when making short-term decisions.

Reference no: EM133931777

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