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Briefly explain the key assumptions underlie cost-volume-profit analysis.

Briefly explain the key assumptions underlie cost-volume-profit analysis.

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Answer #1

The key assumptions underlie cost-volume-profit analysis:

This selling cost per unit is expected to continue constantly.

If more extra than one good is marketed, that relationship of the different goods traded is supposed to settle constant.

Fixed prices are expected to persist consistently at every level of businesses inside a proper range of movement.

During producing organizations, the number of parts manufactured is expected to reach the number of units traded per period.

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