If a multi-product company simply wants to know the overall break-even point and is willing to assume its product mix stays constant, it is easiest to use the break-even point in dollar sales revenue approach.

Question

Quizplus · Accepted Answer

Using the break-even point in dollar sales revenue approach allows a multi-product company to determine the total amount of revenue it needs to generate to cover all its costs and achieve a break-even point, regardless of the product mix. This approach is easier than calculating the break-even point for each individual product.

If a Multi-Product Company Simply Wants to Know the Overall