Question

cost-volume-profit analysis assumes that over the relevant range

a.variable costs are nonlinear

b. fixed costs are nonlinear

c.selling prices are unchanged

d. total costs are unchanged

Answer 1

C)	selling prices are unchanged
Relevant range is a band of activity where the cost and sales behavior predictable.
the assumptions made are
the behavior of sales and costs is linear	this means the cost remains constant until the change in unit cost
total costs change due to a change in variable costs
the units sales price is constant	thus selling prices are unchanged

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