Which of the following is not an assumption of the linear breakeven model:
A) constant selling price per unit
B) decreasing variable cost per unit
C) fixed costs are independent of the output level
D) a single product (or a constant mix of products)is being produced and sold
E) all costs can be classified as fixed or variable

Question

Quizplus · Accepted Answer

The linear breakeven model assumes a constant selling price per unit, fixed costs that are independent of output level, a single product or constant mix, and that all costs can be classified as either fixed or variable. However, the model does not assume a decreasing variable cost per unit.

Which of the Following Is Not an Assumption of the Linear