What are the assumptions for Cost-Volume-Profit Analysis (Break Even Point Analysis)

very good mr ahmed abd alwahab

I agreed with u

1. All cost can be categorized as variable or fixed.
2. Sales price per unit, variable cost per unit and total fixed cost are constant.
3. All units produced are sold.

1-    Sales Price per unit is constant on the level of unit under relevant range

2-    Variable Cost per unit is constant on the level of unit under relevant range

3-    No production Inventory That mean production Volume equal Sales Volume

4-    One product In case of multiple product companies, the selling prices, costs and proportion of units (sales mix) sold will not change

5-    Fixed costs remain constant within the relevant range. Fixed costs remain unchanged at any level of activity within the relevant range.

6-    The behavior of total revenues and total costs will be linear over the relevant range.