Break-even analysis usually assumes:

Name: Break-even analysis usually assumes:
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Quizplus · Accepted Answer

Break-even analysis assumes that the average variable costs are constant, while fixed costs are already known. This assumption allows managers to determine the level of sales required to cover all costs and earn a profit, and the contribution margin per unit needed to reach the break-even point. Marginal revenue, fixed costs, and marginal costs are not necessarily assumed to behave in a specific way in break-even analysis.

Break-Even Analysis Usually Assumes