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Assumptions of Break-Even Analysis
1. The break-even chart is fundamentally a static analysis; commonly changes can merely be displayed by drawing a new chart or a series of charts
2. Relevant range is given to explain fixed and variable costs in relation to an exact period and designated range of production level
3. All costs go down into either variable or fixed cost classification
4. Unit variable costs stay the similarity and there is a direct relationship between volume and costs
5. Volume is assumed to be the merely important factor affecting cost nature
6. Unit sales price and other market situations are assumed to stayed unchanged
7. Net fixed costs stay constant over the relevant range considered
8. Inventory changes are so unimportant such they have no impact on the analysis
9. The technology level does not change.
Direct Material Cost Variances (DMCV) This variance is a general difference in the standard direct material cost and the actual direct material cost. This variance may be prese
I just do not know which form those numbers should go in. I would canculate the results myself. Thanks John and Ellen Brite are married and file a joint return. They have no depend
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