Sensitivity Analysis Example for SIS

SCHOLARSHIP INFORMATION SERVICES
SENSITIVITY ANALYSIS
FOR YEAR 200X
15%
Decline
in Sales		 10%
Decline
in Sales		 200X Actual
Forecasted
Figures		 10%
Incline
in Sales
Sales in units $3,400 $3,600 $4,000 $4,400
Selling Price $26 $26 $26 26
Total Cost per product $3 $3 $3 $3
GROSS PROFIT:
Sales $88,400 $93,600 $104,000 $114,400
Cost of Goods Sold $10,200 $10,800 $ 12,000 $ 13,200
GROSS PROFIT $78,200 $82,800 $ 92,000 $101,200
OPERATING EXPENSES:
Marketing Expenses:
Promotional Pamphlet Expense $ 4,000 $4,000 $4,000 $ 4,000
University Advertising Expense $ 8,000 $8,000 $8,000 $ 8,000
Newspaper Advertising Expense $25,998 $25,998 $25,998 $25,998
Total Marketing Expenses $37,998 $37,998 $37,998 $37,998
Administrative Expenses:
Office Salaries Expense $15,600 $15,600 $15,600 $15,600
Employer Costs (11% of Salary) $1,716 $1,716 $1,716 $1,716
Office Supplies Expense $2,500 $2,500 $2,500 $2,500
Business Cards, etc. Expense $ 250 $ 250 $ 250 $ 250
Printing of Checks Expense $ 75 $ 75 $ 75 $ 75
Telephone Expense $1,200 $1,200 $1,200 $1,200
Business Registration Expense $1,200 $1,200 $1,200 $1,200
Message Centre Expense $4,600 $4,600 $4,600 $4,600
Toll Free Services Expense $9,600 $9,600 $9,600 $9,600
Credit Card Service Expense $4,992 $4,992 $4,992 $4,922
Bank Charges Expense $ 240 $ 240 $ 240 $ 240
Miscellaneous Expenses $1,800 $1,800 $1,800 $1,800
Depreciation Expense, Auto $1,000 $1,000 $1,000 $1,000
Depreciation Expense, Equipment $1,400 $1,400 $1,400 $1,400
Total Administrative Expenses $46,173 $46,173 $46,173 $46,173
TOTAL OPERATING EXPENSES $84,171 $84,171 $84,171 $84,171
INCOME BEFORE TAXES $(5,971) $(1,371) $7,829 $17,029

All Operating Expenses are Assumed to Be Fixed Costs. The only variable cost considered is the product cost.
Categories: Samples and Examples