Use the formula provided below to identify sensitivity analysis based on the selling cost, production cost and total fixed cost. Sensitivity analysis formula is defined as Total Fixed Cost / (Selling Cost - Production Cost). Subtract the production cost from the selling cost. Divide the resultant value by total fixed cost to find the resultant value. This sensitivity analysis variable cost formula helps the analyst to identify how changes in one variable impacts the future outcome.
Sensitivity analysis is a tool to identify the right place for your business investment. It is also referred as what-if or simulation analysis. Sensitivity analysis formula used to identify decision the result of a decision by using certain variables.