Answer to Question #8029 in Microeconomics for dolores

Question

1. Which of the following items is NOT an assumption of the CVP analysis: (a) Costs may be separated into separate fixed and variable components (b) Total revenues and total costs are linear in relation to output units (c) Unit selling price, unit variable cost, and unit fixed costs are known and remain constant (d) Proportion of different products will remain constant when multiple products are sold.