Abstract
The purpose of this paper is to establish a method for sensitivity analysis of profitability of mutually exclusive probuction altermatives when future uncertainties on those factors as sales price, volume of demand, variable manufacturing cost and fixed manufacturing cost are concerned. This aper first illustrates a procedure of eliminating alternatives which are disqualified from being the best profitable under any market conditions, and then constructs a systematic rule to find the safest altermative under uncertainty of each factor concerned. It is clarified that the method of sensitivity analysis presented in this paper can be easily practiced on profit chart and that it can be extended to some practical cases.
