Economics · Cost-Volume-Profit Analysis
In cost-volume-profit analysis, which of the following assumptions is most critical?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Product mix changes frequently
- 2Fixed costs decrease with increase in production
- 3Variable cost per unit remains constant within relevant range✓
- 4Selling price per unit varies with output
Correct answer
Variable cost per unit remains constant within relevant range
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