Which of the following is not an assumption of conventional cost/volume/profit (CVP) analysis?
A) The variable cost per unit varies over the relevant range of activity.
B) The sales mix is unchanged over the relevant range of activity.
C) Total fixed cost is constant over the relevant range of activity.
D) Total variable cost changes in direct proportion to changes in the level of activity over the relevant range.
E) The total revenue function is linear within the relevant range.
Correct Answer:
Verified
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