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Hello Sir,
I have another doubt regarding the concept of Breakeven Analysis.
It says “If sales are at the specified level but not in the specified mix, there will be either a P/L depending on whether the mix shift towards products with higher or lower contribution margin”
What does specified mix and specified level refer to in this sentence? Like I mean whats the difference in these two wordings?
Thank you!
Specified level means the total sales are as specified.
Not in the specified mix means that even though the total sales of the various products are as specified, the split of the sales between the various products is not as specified.
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