Question: Name three major assumptions underlying a CVP analysis. What is meant by the term sales mix? What assumption is usually made concerning the sales mix

  • Name three major assumptions underlying a CVP analysis. What is meant by the term "sales mix"?
  • What assumption is usually made concerning the sales mix in a CVP analysis?
  • Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.
  • Discuss the nonfinancial factors that may affect the decisions that result from a CVP analysis.

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