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Shady Inc. manufactures lampshades. The controller has been provided with the following information from the coming year's budget: Variable cost per shade for first six
Shady Inc. manufactures lampshades. The controller has been provided with the following information from the coming year's budget: Variable cost per shade for first six months of the year $2.50 Variable cost per shade thereafter unknown Total fixed costs $250,000 Planned unit sales of lampshades 100,000 Shady would like to perform cost-volume-profit (CVP) analysis for the lampshades. Which one of the following statements is true? Question 6 options: a) CVP analysis cannot be performed because unit sales are planned but not known. b) CVP analysis cannot be performed because variable costs per unit are not constant. c) CVP analysis cannot be calculated because total fixed costs are constant. d) The contribution margin per unit can be determined for lampshades
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