The preferred approach to breakeven analysis for a multiproduct firm is the ________.
A) breakeven point expressed in units
B) breakeven point expressed in dollars
C) cash breakeven point
D) overall breakeven point

Question

Quizplus · Accepted Answer

Expressing the breakeven point in dollars allows for easier comparison between the different products and provides a more holistic view of the firm's financial situation. The cash breakeven point and overall breakeven point may also be useful, but expressing the breakeven point in dollars is the preferred approach for a multiproduct firm.

The Preferred Approach to Breakeven Analysis for a Multiproduct Firm