Sales Percentage Factor used for a Sensitivity Analysis


The second component of the Sensitivity Analysis is the Sales Percentage Factor.  Sales Percentage Factors indicate the sales percentage increases and decreases in which the analysis is based upon. As you can see, Resume Services' Forecasted Sensitivity Analysis uses the following sales percentage factors.

15% Decline
in Sales
10% Decline
in Sales
200X Actual
10% Incline
in Sales


Therefore, the company's sensitivity analysis shows how its original forecasted net income will change, if sales decrease by 15% & 10%, and if sales increase by 10%.

The third column, entitled "original forecasted figures" represents the company's 200X original forecasted income statement. Furthermore, the sales percentage factors will be applied to the values appearing under this column.

Categories: Financial