asic break$-$even analysis typically assumes that:

Select one:

a$.$

variable costs and revenues increase in direct proportion to the volume of production.

b$.$ both costs and revenues are made up of fixed and variable portions.

c$.$

revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases.

d$.$ costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts.

e$.$ all are assumptions in the basic break$-$even model