-It holds the assumption that sales prices are constant at all levels of output. That is, it assumes all customers same price for different quantities of the units. However sales prices often fall as larger quantities are produced due to -It holds the assumption that production and sales are the same. Nevertheless, sales may often be less than production because not all units may be sold. -Break even analysis can only be used for a single mix of products, or similar products. This is because different mixes of products will have costs and expenses which differ by far and hence cannot be easily used in analysis. Costs are not stagnant as shown in break-even analysis. Even fixed costs may sometimes step up in relation to levels of production. Variable costs may also fall with larger -It holds the assumption that sales prices are constant at all levels of output. That is, it assumes all customers same price for different quantities of the units. However sales prices often fall as larger quantities are produced due to -It holds the assumption that production and sales are the same. Nevertheless, sales may often be less than production because not all units may be sold. -Break even analysis can only be used for a single mix of products, or similar products. This is because different mixes of products will have costs and expenses which differ by far and hence cannot be easily used in analysis. Costs are not stagnant as shown in break-even analysis. Even fixed costs may sometimes step up in relation to levels of production. Variable costs may also fall with larger