Question

Managers make assumptions in CVP analysis. These assumptions include:__________

a) constant total fixed costs. constant total variable costs.
b) constant fixed cost per unit.
c) constant sales volume.
d) constant variable cost per unit.
e) constant selling price per unit.

Answer 1

constant variable cost per unit.

constant total fixed cost

constant selling price per unit

Step-by-step explanation:

Cost-volume-profit (CVP) analysis is a way to found out if the variable and fixed cost should be changed so how it effects the profit of the firm. Also company could applied cost volume profit analysis in order to see how much units they required to sell in order to have break even or reach to the specific minimum profit margin

So in this, the total fixed cost, selling price per unit, and the variable cost per unit should be constant