Which of the Following Situations Would Be Most Likely to Violate

Multiple Choice

Which of the following situations would be most likely to violate cost-volume-profit assumptions about fixed costs?

A) When production volume increases beyond the capacity of the plant, a second shift will be added instead of building a new plant.
B) As volume decreases, per-unit fixed manufacturing overhead remains constant.
C) The company's raw material supplier typically allows volume discounts when larger amounts of the raw material are purchased.
D) Fixed costs per unit decrease as volume increases.