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multi-product BE chart

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › multi-product BE chart

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • September 15, 2020 at 11:47 am #585730
    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?

    September 15, 2020 at 3:16 pm #585749
    John Moffat
    Keymaster
    • Topics: 57
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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.

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