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Apologies, if this is a stupid question (more general prep for resit P1).
On a multi product CVP graph, are the products in order of the highest contribution earned? (eg product with the highest contribution is 1st, 2nd highest 2nd etc).
Hi- no need to apologise -I am here to help you -it’s no problem 🙂
When the p/v line on graph is drawn more like a curve with slopes at different gradients -then this means the products are assumed to be sold in order of highest individuak c/s ratio first.
However, when the P/V line is drawn as a perfectly straight line -this represents breakeven & profit/loss areas- if the products are sold in their budgeted sales quantities (at standard mix).
Hope that helps.
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