8 Which of the following is not a necessary assumption for CVP 0 I do not want to answer this Question 1 Product prices will remain constant 2 The fixed cost will remain constant for the given range of activity 3 Contribution will remain constant 4 Variable cost has a linear relationship with the units produced 9 When the step-down method is used the service department whose costs are allocated first is often the department that: O I do not want to answer this Question 1 has the lowest cost. 2 is the newest 3 serves the greatest number of other service departments. 4 serves the fewest other service departments. 10 What will be the impact of a 2% increase in the prices on net profit: Particulars Net Profit Margin 12% Contribution Margin 42% Increase in VC 4% Increase in FC 1% Price Elasticity -0.5 O I do not want to answer this Question 1 Net profit will increase by 8.64% 2 Net profit will decrease by 5.14% 3 Net profit will not be affected 4 Net profit will decrease by 8.64%