To calculate the breakeven point in a multiproduct situation, one must assume that the sales mix of the various products remains constant.

Question

Quizplus · Accepted Answer

The breakeven point can only be calculated under the assumption that the sales mix remains constant because it affects the contribution margin of each product and the overall breakeven quantity. If the sales mix changes, the breakeven point will also change.

To Calculate the Breakeven Point in a Multiproduct Situation, One