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Multi Product CVP Analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Multi Product CVP Analysis

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • November 22, 2018 at 5:46 pm #485528
    iyamu
    Participant
    • Topics: 286
    • Replies: 171
    • ☆☆☆

    From your video lectures Multi product CVP Analysis example 6 the fixed costs was 8000.

    The break even revenue you calculated was = fixed costs/av. C/S Ratio

    8000/0.303 = $26,402.

    My question, supposed we were to calculate the break even units what do i do? Can i use the same fixed costs/ Av c/s ratio?

    Because the break even units you calculated was for a single product in example 1 which was the 250 units * $6 = 1500.

    November 23, 2018 at 9:10 am #485577
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Breakeven units is breakeven revenue divided by the selling price per unit.

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