Cost-volume-profit (CVP)analysis assumes that the selling price per unit does not change as volume changes.

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CVP analysis assumes that the selling price per unit remains constant regardless of changes in volume. This simplifies the analysis as it eliminates the need to consider the impact of changes in pricing on the contribution margin and profitability. However, in reality, selling prices may change due to various factors such as competition, changes in customer preferences, or changes in production costs.

Cost-Volume-Profit (CVP)analysis Assumes That the Selling Price Per Unit Does