Before choosing strategies and plans about how to implement strategies, managers frequently analyze the sensitivity of their decisions to changes in underlying assumptions. Sensitivity analysis is a “what – if “ technique that managers use to examine how an outcome will change if the original predicted data are not achieved or if an underlying assumption changes. In the context of CVP analysis, sensitivity analysis answers questions such as, “What will operating income be if the quantity of units sold decreases by 5% from the original prediction? “and “What will operating income be if variable cost per unit increases by 10%?” Sensitivity analysis broadens managers’ perspectives to possible outcomes that might occur before costs are committed.