Breakeven analysis assumes constant selling price and constant average variable cost.

Name: Breakeven analysis assumes constant selling price and constant average variable cost.
Brand: Quizplus
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Quizplus · Accepted Answer

Breakeven analysis assumes that the selling price and average variable cost remain constant regardless of the level of output. This allows for a simplified calculation of the breakeven point where total revenue equals total costs. However, in reality, prices and costs may vary at different levels of production.

Breakeven Analysis Assumes Constant Selling Price and Constant Average Variable