Why Is Identification Of A Relevant Range Important In Cvp Analysis?

Top of FormWhy is identification of a relevant range important in CVP analysis?Select one:a. Linear cost relationships may not hold outside of the relevant range.b. It directly impacts the number of units of product a customer buys.c. It is the range over which all costs are constant.d. It is required under GAAP.Question 12Not yet answeredPoints out of 2.00Flag questionQuestion textBrennan Company currently sells 40,000 units of a product which has a unit sales price of $24, unit variable cost of $16 and total fixed costs of $280,000. The number of units Brennan must sell to earn $30,000 in net income isSelect one:a. 38,750 units.b. 35,000 units.c. 1,250 units.d. 19,375 units.Question 13Not yet answeredPoints out of 2.00Flag questionQuestion textIf an entity decreases the number of units it produces in an accounting period, theSelect one:a. unit fixed costs should increase.b. unit variable costs should increase.c. unit fixed costs should remain the same.d. total variable costs should remain the same.Question 14Not yet answeredPoints out of 2.00Flag questionQuestion textIf management chooses to reduce the selling price of its product to match that of a competitor, thenSelect one:a. The breakeven point in units will increase.b. The contribution margin per unit will increase.c. The contribution