In the linear breakeven model,the relevant range of output is that range where the linearity assumptions of the model are assumed to hold.

Question

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The linear breakeven model assumes that there is a linear relationship between total revenue and total costs within a certain range of output. This range is known as the relevant range of output. Outside of this range, the assumptions of the model may not hold true, and the relationship between revenue and costs may not be linear. Therefore, option A is correct.

In the Linear Breakeven Model,the Relevant Range of Output Is