The assumptions that underlie basic CVP analysis include all of the following except:

a-when more than one product is sold, total sales will be in a constant sales mix

b-the behavior of both costs and revenue is linear throughout the relevant range

c-all three of the choices are assumptions

d-all costs can be classified as variable or fixed with reasonable accuracy

A companys break even point can be decreased by decreasing which of the following:

a-The selling price

b-the contribution margin

c- the contribution margin ratio

d- variable costs per unit

A Static budget is:

a-modified or adjusted for changes in acitivy during the year

b-appropriate in evaluating a manager's effectiveness in controlling variable costs

c-appropriate in evaluating a manager's effectiveness in controlling fixed costs

d-applicable to cost budgets but not to a sales budget

Which are the correct answers