The break-even model assumes that selling price per unit and variable cost per unit of output are constant over the relevant range of output.

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The break-even model assumes that selling price per unit and variable cost per unit of output are constant over the relevant range of output. This is necessary for the calculation of the break-even point, which is the level of production at which total revenue equals total costs. However, it should be noted that in reality, selling price and variable costs may vary depending on various factors such as market demand, competition, and input prices.

The Break-Even Model Assumes That Selling Price Per Unit and Variable