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Unformatted text preview: CVP assumes that it is impossible to increase profits without also increasing gross margin. CVP assumes that per unit fixed costs will not change with volume. CVP assumes inventory levels are fairly constant, with the number of units produced equaling the number of units sold. CVP assumes that the contribution margin can be determined by subtracting per unit fixed costs from per unit sales. CVP assumes revenues are constant per unit....
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- Spring '11