43 Basic break-even analysis typically assumes that: Select one: a. costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts. b. all are assumptions in the basic break-even model c. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases. d. variable costs and revenues increase in direct proportion to the volume of production. e. both costs and revenues are made up of fixed and variable portions.
43 Basic break-even analysis typically assumes that: Select one: a. costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts. b. all are assumptions in the basic break-even model c. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases. d. variable costs and revenues increase in direct proportion to the volume of production. e. both costs and revenues are made up of fixed and variable portions.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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43
Basic break-even analysis typically assumes that:
Select one:
a. costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts.
b. all are assumptions in the basic break-even model
c. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases.
d. variable costs and revenues increase in direct proportion to the volume of production.
e. both costs and revenues are made up of fixed and variable portions.
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