One assumption in CVP analysis is that the number of units produced and sold does not change.

Question

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One assumption in CVP analysis is that the number of units produced and sold will change with changes in sales volume or other factors affecting demand. CVP analysis focuses on the relationship between sales volume, revenue, costs, and profits, and assumes that other factors such as market conditions, competition, and pricing strategies remain constant.

One Assumption in CVP Analysis Is That the Number of Units