Straight‑line break‑even analysis implies that
1) fixed costs eventually decline
2) per unit variable cost may initially fall but start to increase with further increases in output
3) per unit variable costs are constant

Question

Straight‑line break‑even analysis implies that​
1) fixed costs eventually decline
2) per unit variable cost may initially fall but start to increase with further increases in output
3) per unit variable costs are constant

Quizplus · Accepted Answer

Straight-line break-even analysis assumes that per unit variable costs remain constant regardless of the level of output. Fixed costs do not decline, and per unit variable costs do not change with output levels in this model.

Straight‑line Break‑even Analysis Implies That​

Straight‑line Break‑even Analysis Implies That