Question

Given below are assumptions that are made by an entrepreneur in the breakeven-point analysis for a multi-product business.

1. The proportion of the sales mix must be predetermined.
2. The sales mix must change within the relevant period.
3. All costs can be categorized as variable or fixed.
4. Sales price per unit, variable cost per unit, and total fixed cost are calculated as per the forces of demand and supply.
5. All units produced are not sold.

Choose the option that depicts the correct pair of assumptions:

Options

• i and iii

• ii and iii

• iv and v

• i and iv

Answer 1

i and iii