Based on the underlying assumptions of the CVP analysis, indicate whether the following items are assumed to

Question:

Based on the underlying assumptions of the CVP analysis, indicate whether the following items are assumed to (a) remain constant, (b) fluctuate with output, or (c) not addressed specifically in the CVP assumptions.

1. Degree of operating leverage

2. Inventory levels

3. Labor productivity

4. Market conditions

5. Production technology

6. Sale per unit

7. Sales mix

8. Total contribution margin

9. Total fixed costs 10. Variable cost per unit

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