Question: If production volume does not equal sales volume: Multiple Cholce the CVP analysis will always indicate a break - even point that cannot be reached.
If production volume does not equal sales volume:
Multiple Cholce
the CVP analysis will always indicate a breakeven point that cannot be reached.
we must adjust the CVP formulas for that fact to use CVP
the conclusions we draw from a CVP analysis will not be as sound as they would be if we assumed production equaled sales.
we cannot use CVP since an assumption is violated.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
