Cost-volume-profit analysis assumes a constant sales mix.

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Cost-volume-profit analysis assumes that the sales mix is constant, meaning that the proportion of each product or service sold remains the same even as overall sales volume changes. This assumption is necessary for accurate calculations of contribution margin, break-even point, and other key metrics. However, in reality, sales mix may vary due to factors such as changes in customer preferences, market conditions, or product availability.

Cost-Volume-Profit Analysis Assumes a Constant Sales Mix