Mathematics · Marginal Costing
In Cost-Volume-Profit (CVP) analysis, if the selling price per unit, the variable cost per unit, and the total fixed costs for a project all increase by exactly 10%, which of the following statements is true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Break-even volume and break-even revenue will both remain the same
- 2Break-even volume will decrease by 10% but break-even reven ue will remain unchanged
- 3Break-even volume will remain unchanged but break-even revenue will increase by 10%✓
- 4Break-even volume will increase by 10% and break-even revenue will increase by 10%
Correct answer
Break-even volume will remain unchanged but break-even revenue will increase by 10%
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