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What is the break-even point of multi product company?

What is Monster's break-even point?

  • Monster company sells three products and is, therefore, a multi product company. Its break-even point can be computed by applying the above formula: = $50,000 / $95 * – $55 **

Can break-even analysis be performed for multiple types of products?

  • Break-even analysis may be performed for each type of product if fixed costs are determined separeately for each product. However, fixed costs are normally incurred for all the products hence a need to compute for the composite or multi-product break-even point.

How do you split break even units between two products?

  • The break even units can now be split between the two products using the unit sales mix percentages as follows: Break even units = 2,046 units Unit sales mix = 90% A / 10% B Units of product A = 2,046 x 90% = 1,842 Units of product B = 2,046 x 10% = 205.

What is multi product break-even analysis?What is multi product break-even analysis?

Multi-Product Break-Even Analysis. The determination of the break-even point in CVP analysis is easy once the variable and fixed components of costs have been determined. A problem arises when the company sells more than one type of product.

image-What is the break-even point of multi product company?
image-What is the break-even point of multi product company?
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