Business, 22.03.2020 16:10 selenamr

Lucia is using cost-volume-profit analysis to predict profits for a new product line. Which of the following reflect how Lucia’s analysis is subject to assumptions? (Check all that apply.)

When costs that are classified as variable actually are fixed costs, the analysis may lack validity.

If the inventory changes, the quantity used to calculate total variable costs is different than the quantity used to calculate total revenues.

The analysis lacks validity if the total fixed costs required for the calculated break-even point generate too low of capacity.

Because it is a new product line, and actual cost information is not available, Lucia cannot use cost-volume profit analysis.

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Lucia is using cost-volume-profit analysis to predict profits for a new product line. Which of the f...