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multiproduct CVP analysis assumes that there is a predetermined sales mix (ie budgeted) and that this sales mix will remain constant ie 2:1.
“…in reality, this constant mix ie 2:1 is unlikely to exist…such changes in the mix throughout a period, even if the overall mix for the period is 2:1 will lead to the actual breakeven point being different than anticipated”
Why? if the overall mix for the period is the same as the budgeted, why should the BEP be different?
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