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Which of the Following Is Not an Assumption of Break-Even

Question 2

Multiple Choice

Which of the following is not an assumption of break-even analysis?


A) A company is operating within its relevant range of activity.
B) All costs are either variable or fixed.
C) Revenues and variable costs are constant per unit.
D) Contribution margin is the difference between selling price and total cost per unit.
E) Fixed cost per unit decreases as volume increases.

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