Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Breakeven
- This topic has 5 replies, 2 voices, and was last updated 4 years ago by John Moffat.
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- November 7, 2019 at 12:47 pm #551768
Hi sir
In the multiproduct PV chart if we sell the products based on the optimal mix rather than constant sales mix , we will achieve the breakeven sooner right
Will there be a calculation on what’s that new breakeven point
November 7, 2019 at 8:03 pm #551803What do you mean by ‘optimal mix’?
We either assume a constant sales mix, or we assume that they are sold in the order of highest contribution. Both calculations can be asked and both are explained in my free lectures.
November 8, 2019 at 1:13 pm #551827yes sir
in that you did 8000/0.379 which i understood.
suppose when we plotted sales in order of cs ratio if p was plotted below the line and then c was plotted and if that was the one touching through the volume line , we have sold two products now.. full p and half of C.. so how to calculate the CS ratio to be divided with the Fixed cost
how would we find the new break even pointNovember 8, 2019 at 3:25 pm #551836But I also do this in the lecture. You know the CS ratio of each product individually – there is no new CS ratio to calculate. The breakeven is where the C line crosses the axis.
November 9, 2019 at 5:16 pm #551887So to find it just divide fixed cost with C’s csratio ?
November 9, 2019 at 6:49 pm #551897Almost, but watch the lecture 🙂
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