All of the Following Are Assumptions Required to Perform Break-Even

question 58

Multiple Choice

All of the following are assumptions required to perform break-even and target profit calculations except:

• A)Costs can be separated into fixed and variable components.
• B)Contribution margin ratio remains constant for each product,segment,or department.
• C)Break-even points can only be calculated for single product companies.
• D)Sales mix remains constant with changes in sales volume.
• E)None of the answer choices is correct.

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Definitions:

Etiology

The study of the causes or origins of diseases and disorders.

Axillary

Pertaining to the armpit area.

Centigrade

A scale of temperature in which water freezes at 0 degrees and boils at 100 degrees under standard conditions.

Hemiplegia

Paralysis of one side of the body, typically resulting from damage to the brain or spinal cord.