CVP Analysis Assumptions Steps:

• List standard CVP assumptions: constant unit selling price, constant unit variable costs, total fixed costs constant (not per unit), and production equals sales.
• Evaluate option A: matches constant unit selling price assumption.
• Evaluate option B: matches constant unit variable cost assumption.
• Evaluate option C: contradicts, as unit fixed costs vary with volume while total fixed costs remain constant.
• Evaluate option D: matches no-inventory-change assumption.

Why C is correct:

• In CVP, total fixed costs are constant across volume levels, so unit fixed cost decreases as units increase, per the formula: unit fixed cost = total fixed costs / units sold.

Why the others are wrong:

• A: CVP assumes constant unit selling price for linear revenue behavior.
• B: CVP assumes constant unit variable costs for predictable total variable expenses.
• D: CVP assumes units produced equal units sold to simplify profit calculations without inventory effects.

Final answer: C