In a multi-product environment,CVP analysis makes the assumption that a company's sales mix is constant.

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CVP analysis assumes that the sales mix of a company remains constant despite changes in the level of overall sales or production volume. This assumption simplifies the analysis by treating the sales mix as a fixed proportion of total sales, rather than trying to account for shifts in customer preferences or changes in marketing strategies that might affect the relative sales of different products.

In a Multi-Product Environment,CVP Analysis Makes the Assumption That a Company's