Locational cost-profit-volume analysis assumes: i. nonlinear variable costs. ii. fixed costs that are constant over the range of possible output. iii. accurate estimates regarding the required level of output. iv. multiple products. i, ii, iii, and iv i, iii, and iv only i, ii, and iii only ii, iii, and iv only ii and iii only.

II, III, and IV only

Explanation:

A locational cost volume profit analysis helps a firm determine their break even point by taking into consideration fixed cost and variable costs at a certain level of production.

It usually assumes that fixed costs are stepped and as such they are constant over a certain production volume. It also assumes the variable costs are linear and change wit the production consistently. For cvp analysis to be accurate it is essential that estimates are accurate.

CVP analysis can also account for multiple products by using the sales mix ratio and a weighted average contribution to make the analysis, in light of above information Statement II, III and IV are correct.

Hope that helps.

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