When the Assumption of Linearity Is Applied to Revenue in CVP

question 44

Multiple Choice

When the assumption of linearity is applied to revenue in CVP analyses

• A) Fixed cost per unit increases as revenue decreases
• B) Variable cost per unit is linear with respect to total revenue
• C) The sales mix and all of the prices remain constant
• D) The sales mix remains constant, but prices decrease as volumes increase

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Definitions:

Antibodies

Proteins produced by the immune system in response to antigens, which help to identify and neutralize foreign objects like bacteria and viruses.

Macrophages

Large white blood cells that are an essential part of the immune system, responsible for detecting, engulfing, and destroying pathogens and dead cells.

Antigens

Foreign substances in the body that trigger an immune response.