Which assumption is NOT part of CVP analysis?

In Cost-Volume-Profit (CVP) analysis, one of the key assumptions is that the sales price per unit remains constant, meaning that any change in price will directly affect volume, leading to potential variability in sales performance. However, stating that a change in sales price does not affect volume is not consistent with this principle.

The assumption implies that prices remain stable regardless of how changes might impact consumer behavior and sales volume. The premise of CVP analysis is to evaluate how changes in costs, production levels, and sales prices can affect profits. Therefore, it's crucial to acknowledge that in a real-world scenario, an increase or decrease in sales price is likely to influence the volume of sales, making option A inconsistent with the foundational aspects of CVP analysis.

In contrast, the other assumptions illustrate more standard considerations within CVP analysis. For example, all costs being classified as either variable or fixed helps simplify the overall analysis, allowing a clearer understanding of profitability based on volume changes. Assuming no change in inventory levels ensures that the focus can remain squarely on sales volume and cost behavior without complicating factors like inventory accounting. Finally, keeping the sales mix constant means that the analysis can focus on the contribution margins of individual products without worrying about changing proportions of