Break-even analysis assumes which of the following to be true

Question

Quizplus · Accepted Answer

Break-even analysis assumes that unit variable expenses remain constant. This means the cost per unit of producing and selling a product stays the same regardless of the quantity produced. It also assumes that total fixed expenses and unit fixed expenses remain constant. However, variable expenses may change based on the level of production and sales. Therefore, option D is the best choice.

Break-Even Analysis Assumes Which of the Following to Be True