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ASSUMPTIONS OF BREAK EVEN ANALYSIS
1. Fixed costs for all time remain constant.
2. All costs are divided into fixed and variable costs.
3. Selling price will not alter despite competition.
4. Variable costs SVD change in direct proportion to production.
5. There is no alteration in common price level.
6. There is no alteration in operating efficiency.
7. Quantity of production is the only affecting factor.
8. Quantity of sales and volume of production are equal.
9. Only one product or sales mix is same.
A company produces three types of items. A single machine is used to produce the three items on a cyclical basis. The company has the policy that every item is produced once during
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#question.what is defination.
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