CVP analysis makes all of the following assumptions except     a change in volume is the only factor that affects costs.     revenues are linear throughout the relevant range.     the mix of products will not change.     inventory levels will increase.

Which of the following statements is true? I. Incremental analysis is an analytical approach that focuses only on those revenues and costs that will not change as a result of a decision. II. When expressed on a per unit basis, fixed costs can mislead decision makers into thinking of them as variable costs. II. To estimate what the profit will be at various levels of sales volume, multiply the number of units to be sold above or below the break-even point by the unit contribution margin. Statements I and III are true. Statements II and III are true. All of the statements are true. None of the statements are true.

Please explain the statement below thourougly with an example to illustrate the answer.  "A product with a high gross profit could be an unprofitable product".

For each situation, list the assumption, principle, or constraint that has been violated, if any. List only one answer for each situation. a.   East Lake Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain.   choose one of the assumption, principle or constraint                                                           Going concern assumptionPeriodicity assumptionNo violationHistorical cost principleRevenue recognition principleEconomic entity assumption b.   Hilo Company is in its fifth year of operation and has yet to issue financial statements. (Do not use the full disclosure principle.)   choose one of the assumption, principle or constraint                                                           Historical cost principleGoing concern assumptionRevenue recognition principleNo violationPeriodicity assumptionEconomic entity assumption c.   Gomez, Inc. is…