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John Moffat.
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Noah098
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sir the gradient in a multi-product breakeven chart is the C/S ratio of a product or contrn/unit?
John Moffat
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Neither – a break-even chart does not show the contribution. It shows the revenue line and the total cost line.
For multi-product CVP analysis it is the PV chart that is important. If the sales are made in a constant ratio then the gradient is the average contribution per unit. If the sales are made in order of their CS ratios, then the gradients are the contributions per unit of each individual product.
Noah098
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