Breakeven analysis assumes over the relevant range that A- Selling prices are nonlinear. B- Fixed costs...
Breakeven analysis assumes over the relevant range that
A- Selling prices are nonlinear.
B- Fixed costs are nonlinear.
C-Total costs are linear.
D-Variable costs are nonlinear.
Homework Answers
Answer:
C-Total costs are linear
Explanation to the answer:
Relevant range is a area for the activity in which revenue and costs are predicted with reasonable certainty. in this range the sales and total costs are considered to have linearly. So Breakeven analysis assumes over the relevant range that total costs are linear.
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