I What two arguments tend to justify classifying all costs as either fixed or variable even

though individual costs might not behave exactly as classified?

II$.$ The ability to perform cost profit analysis is a very important skill. What real life

questions can be answered with this analysis?

III. Describe the concept of relevant range. How does this help with the accuracy of CVP

analysis.

IV$.$ In cost$-$volume$-$profit analysis, what is the estimated profit at the break$-$even point?

V$.$ Think about this one for a minute and plan with the numbers before you answer.....Each

of two similar companies has sales of $$20,000$ and total costs of $$15,000$ for a month.

Company A$\text{'}$s total costs include $$10,000$ of variable costs and $$5,000$ of fixed costs. If

Company B$\text{'}$s total costs include $$4,000$ of variable costs and $$11,000$ of fixed costs, which

company will enjoy more profit if sales double?