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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Breakeven
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
What 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.
yes 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 point
But 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.
So to find it just divide fixed cost with C’s csratio ?
Almost, but watch the lecture 🙂
