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Breakeven Analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Breakeven Analysis

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 4, 2018 at 12:55 pm #483772
    farah92
    Member
    • Topics: 21
    • Replies: 22
    • ☆

    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!

    November 4, 2018 at 4:03 pm #483792
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54748
    • ☆☆☆☆☆

    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.

    November 5, 2018 at 7:37 am #483841
    farah92
    Member
    • Topics: 21
    • Replies: 22
    • ☆

    Thanks for the explanation!

    Have a good day! 🙂

    November 5, 2018 at 8:06 am #483866
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54748
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Breakeven Analysis’ is closed to new replies.

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