Which of the Following Is Not an Assumption of the Linear

question 24

Multiple Choice

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

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Definitions:

Mistake

An erroneous belief, at the time a contract is concluded, about certain facts or laws that may affect the contract's validity.

Intoxicated Persons

Individuals whose cognitive and physical abilities are significantly impaired due to the consumption of alcohol or drugs.

Capacity

The legal ability and authority to enter into binding contracts and obligations.

Covenant Not to Compete

A legal agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.