Break-even analysis assumes that:
A) total costs are constant.
B) the average fixed cost per unit is constant.
C) the average variable cost per unit is constant.
D) variable costs are nonlinear.

Question

Quizplus · Accepted Answer

Break-even analysis assumes that the average variable cost per unit is constant, meaning that variable costs change in direct proportion to the level of production or sales volume.

Break-Even Analysis Assumes That