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break-even revenue for Multi-product CVP analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › break-even revenue for Multi-product CVP analysis

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • April 18, 2019 at 12:38 am #513324
    kingkongsajang
    Member
    • Topics: 95
    • Replies: 75
    • ☆☆

    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.

    April 18, 2019 at 6:11 am #513344
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    That is correct 🙂

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  • The topic ‘break-even revenue for Multi-product CVP analysis’ is closed to new replies.

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