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Tutorial 7 Topic 9 (1) - Word ABDISAMAD MOHAMED AMIN esign Layout References Mailings Review View Help O Search 1. What is the underlying assumption
Tutorial 7 Topic 9 (1) - Word ABDISAMAD MOHAMED AMIN esign Layout References Mailings Review View Help O Search 1. What is the underlying assumption for cost-volume-profit analysis? A. Revenues and costs behave in a linear manner B. Costs can be categorized as variable, fixed, or semi-variable C. Worker efficiency and productivity remain constant D. All of these are assumptions that underlie cost-volume-profit analysis 2. The contribution margin per unit increases due to: A. increase in selling price B. decrease in selling price C. increase in variable costs D. decrease in fixed costs 3. Peter Furniture has fixed costs of RM10,000 and contribution margin per unit of RM24. Which of the following statement is (are) TRUE? A. Each unit contributes RM24 toward covering the fixed costs of RM10, 000 B. The situation described is not possible and there must be an error C. Once the break-even point is reached, the company will make money at the rate of RM24 per unit D. Statements A and C are true ES A
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