ECONOMICS

Detailed explanation-1: -The correct answer is True. Under the CVP (Cost-Volume-Profit) analysis for a firm, the selling price per unit, the variable cost per unit, and the total fixed costs are considered constant for a particular production volume range.

Detailed explanation-2: -The answer to the given question is True. Break-even analysis is a special case of cost-volume-profit analysis as break-even analysis is used to determine the sales (in units or volume and amount) required to break-even i.e. when there is no profit or no loss.

Detailed explanation-3: -The statement is FALSE. One of the assumptions of CVP analysis is that fixed costs remain constant within the relevant range and another is the variable costs stay the same per unit.

Detailed explanation-4: -Overall fixed cost will remain constant but fixed costs per unit will decrease as volume increases. Therefore this statement as it is written is not an assumption o CVP analysis.