ECONOMICS

Detailed explanation-1: -Explanation: Breakeven analysis assumes that all variable costs and revenues are constant on a per-unit basis and are linear over a relevant range. Fixed costs in total are constant.

Detailed explanation-2: -Break-even analysis is based on three following assumptions:-1 The variable cost per unit is fixed production-oriented but undergoes a transformation proportionately in relation to a product. 2 All the elements of cost are divided into fixed or variable cost. 3 The stock valuation is restricted to a certain cost.

Detailed explanation-3: -What is Relevant Range? The relevant range refers to a specific activity level that is bounded by a minimum and maximum amount. Within the designated boundaries, certain revenue or expense levels can be expected to occur. Outside of that relevant range, revenues and expenses will likely differ from the expected amount.

Detailed explanation-4: -In the break-even analysis since we keep the function constant, we project the future with the help of past functions. This is not correct. 3. The assumption that the cost-revenue-output relationship is linear is true only over a small range of output.

Detailed explanation-5: -The break-even point does not change when sales change. It remains the point at which revenue covers variable and fixed costs without any profit or loss. A company experiences a profit if sales surpass the break-even point and a loss if sales drop below it.