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1- Sales Price per unit is constant on the level of unit under relevant range
2- Variable Cost per unit is constant on the level of unit under relevant range
3- No production Inventory That mean production Volume equal Sales Volume
4- One product In case of multiple product companies, the selling prices, costs and proportion of units (sales mix) sold will not change
5- Fixed costs remain constant within the relevant range. Fixed costs remain unchanged at any level of activity within the relevant range.
6- The behavior of total revenues and total costs will be linear over the relevant range.
