Hammond House is a not-for-profit museum. The directors of the museum are considering whether to increase the museum's admission prices. The museum charges one price for adults and a lower price for children. The museum's accountant performed CVP analysis to help the directors make this decision. Before conducting the analysis, the accountant estimated the following information for next year: admission volumes for adults and children, fixed costs, variable cost per admission, and donation revenues. Each of the following is an assumption of CVP analysis. For each assumption, list two examples of factors that could cause the assumption to be violated for Hammond House.
-Fixed costs remain constant in total
-Sales mix remains constant

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The Answer of Hammond House is a not-for-profit museum. The directors of the museum are considering whether to increase the museum's admission prices. The museum charges one price for adults and a lower price for children. The museum's accountant performed CVP analysis to help the directors make this decision. Before conducting the analysis, the accountant estimated the following information for next year: admission volumes for adults and children, fixed costs, variable cost per admission, and donation revenues. Each of the following is an assumption of CVP analysis. For each assumption, list two examples of factors that could cause the assumption to be violated for Hammond House.
-Fixed costs remain constant in total
-Sales mix remains constant

Hammond House Is a Not-For-Profit Museum