• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Breakeven in Multi-Product

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Breakeven in Multi-Product

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 11, 2021 at 4:14 pm #637466
    Natasha1996
    Member
    • Topics: 34
    • Replies: 22
    • ☆☆

    1) How do we calculate BE units with multi-product? We can calculate BE revenue by an average basis by taking the (total contribution / total revenue) of all the products and use that C/S ratio to calculate BE revenue?

    2) Is it true that with multi-product CVP analysis we can calculate Breakeven Revenue by calculating the C/S ratio (Total Contribution / Total Sales) of all the products, But we can’t calculate Breakeven Units since the Fixed cost given is the total of all units produced so it is not possible to calculate Breakeven units (such as in example 6)?

    October 12, 2021 at 7:15 am #637519
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51573
    • ☆☆☆☆☆

    I explain both of these in my free lectures working through the chapter on CVP analysis.

    October 12, 2021 at 11:02 am #637544
    Natasha1996
    Member
    • Topics: 34
    • Replies: 22
    • ☆☆

    I already watched ur lecture that’s why I was asking about these queries. Is this below all correct?

    1) In Single-Product CVP we can calculate Breakeven units; Breakeven revenue; Margin of Safety; C/S ratio; because we have fixed cost incurred which belongs to one product only so it is easier to calculate everything.

    2) BUT with Multi-Product CVP we cannot calculate Breakeven units; Margin of Safety; because we have fixed cost incurred which belongs to more than one product (so we don’t know which product has how much fixed cost) so it is not possible to calculate them.

    3) But we can calculate Breakeven revenue; C/S ratio by taking Average figures (i.e. Total Figures). So we calculate BE revenue by taking Average Figures such as (Total Contribution / Total Sales revenue) to get C/S ratio of all the products.

    4) Although we can only use the Average C/S ratio to calculate BE revenue rather than BE units because we don’t know the individual Fixed cost of each product?

    October 12, 2021 at 3:41 pm #637575
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51573
    • ☆☆☆☆☆

    Yes, all of that is correct.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on FA Chapter 6 Questions Depreciation
  • John Moffat on PM Chapter 7 Questions Pricing
  • Amalsudheesh on FA Chapter 6 Questions Depreciation
  • roshpatel on PM Chapter 7 Questions Pricing
  • John Moffat on Inventory Control (part 2) Quantity Discounts – ACCA Management Accounting (MA)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy