Break-even analysis assumes over the relevant range that
A)total variable costs are linear.
B)fixed costs per unit are constant.
C)total variable costs are nonlinear.
D)total revenue is nonlinear.

Question

Quizplus · Accepted Answer

Break-even analysis assumes that total variable costs change linearly with the level of output, meaning they increase at a constant rate as production increases. This is a simplification to make the analysis manageable and understandable.

Break-Even Analysis Assumes Over the Relevant Range That