When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as

Sensitivity analysis empowers managers with better information for decision making by analyzing how various business strategies will affect profits earned by the company

Indicate whether the statement is true or false

Leslie's Sunglass Company's western territory's forecasted income statement for the upcoming year is as follows

Sales revenue $850,000 Variable costs (520,000 ) Contribution margin $330,000 Fixed costs (480,000 ) Operating loss $(150,000 ) The company's management is considering dropping the western territory and has determined that $310,000 of the fixed expenses is avoidable. What is the change in Leslie's Sunglass Company's forecasted operating for the upcoming year if the western territory is dropped? Assume the company predicts an operating loss across the entire company. A) Operating loss will increase by $20,000. B) Operating profit will increase by $330,000. C) Operating loss will decrease by $20,000. D) Operating profit will decrease by $330,000.