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cvp analysis

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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October 13, 2017 at 8:44 am #410738
adarsh1997
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“Break even can only be used for a single product or for multiple product which are sold in a constant mix.”
– Please explain how this statement is correct?
What happens to the business which sell multiple product but NOT in a constant mix( may be the highest c/s ratio first)? Does this company will not be able to use break even analysis?
October 13, 2017 at 6:40 pm #410842
John Moffat
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If they are not in a constant mix then yes – they do the one with the highest CS ratio first. They are using breakeven analysis, but then they are only using it for one of the products.
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