Question Completion Status: QUESTION 2 Basic break-even analysis typically assumes that variable costs and revenues increase in direct proportion to the volume of production 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 Both costs and revenues are made up of fixed and variable portions O revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases All of the above are assumptions in the break-even model