when sales price, fixed cost, variable cost, and production volume are changing simultaneously, the best approach to determining profitability is:

When sales price, fixed cost, variable cost, and production volume are changing simultaneously, the best approach to determining profitability is sensitivity analysis.

Sensitivity analysis is a method used in financial forecasting to evaluate how various independent variable values influence a certain dependent variable in a given set of circumstances. Sensitivity analysis is frequently utilized in a wide number of disciplines, including biology, geography, economics, and engineering.

Sensitivity analysis hugely beneficial when analyzing and evaluating "Black Box Processes," which have an outcome that is an impenetrable function of many inputs. A function or process that is opaque can't be investigated and examined for some reason

The complete question is here:

When sales price, fixed cost, variable cost, and production volume are changing simultaneously, the best approach to determining profitability is:

Select one:

a. sensitivity analysis.

b. equation.

c. contribution ratio.

d. contribution margin.

Learn more about sensitivity analysis here:

https://brainly.com/question/13266122

#SPJ4