The use of a dollar breakeven point is important when a firm has more than one product, especially when each product is selling at a different price.

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When a firm has multiple products, each product may have a different selling price and cost structure. The dollar breakeven point allows the firm to determine the level of sales needed for the total revenue to cover the total costs of producing all the products. This information is useful for making strategic decisions such as which products to promote or discontinue, and how to price each product to maximize profitability.

The Use of a Dollar Breakeven Point Is Important When