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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › break-even revenue for Multi-product CVP analysis
In your first lecture for a single product, the break-even revenue was calculated as
break-even revenue = break-even units x selling price per unit.
However for the second lecture, calculating the break-even point for a multi-product scenario, you used
Break-even revenue = fixed cost/ average C/S ratio
and said that this was how you calculate the break-even revenue for a single product as well
Q> Is such the case that break-even ratio can be calculated as fixed cost/ C/S ratio for a single product, and the only difference to its calculations for a multi-product scenario, would be that you use the average C/S ratio rather than a singular one?
Thank you sir.
That is correct 🙂