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The purpose of cost-volume-profit analysis is to estimate how profits are affect

ID: 2576747 • Letter: T

Question

The purpose of cost-volume-profit analysis is to estimate how profits are affected by five factors. What are the five factors?

Unit fixed costs, total variable costs, mix of products sold, selling prices, and cost of goods sold.

Selling prices, sales volume, unit variable costs, total fixed costs, and mix of products sold.

Mix of products sold, mix of discount prices, volume of inventory, unit variable costs, and total mixed costs.

Selling prices, sales volume, total mixed costs, total variable costs, and total fixed costs.

Unit fixed costs, total variable costs, mix of products sold, selling prices, and cost of goods sold.

Selling prices, sales volume, unit variable costs, total fixed costs, and mix of products sold.

Mix of products sold, mix of discount prices, volume of inventory, unit variable costs, and total mixed costs.

Selling prices, sales volume, total mixed costs, total variable costs, and total fixed costs.

Explanation / Answer

Selling prices, sales volume, unit variable costs, total fixed costs, and mix of products sold are the five factors Option 2 is correct