In a multi-product firm, if the sales mix changes, the break-even points for each product will change.

Question

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The break-even point for each product depends on its own contribution margin and fixed costs, as well as the sales mix (the proportion of each product sold). Therefore, if the sales mix changes, the break-even point for each product will also change. For example, if a firm increases sales of a product with a higher contribution margin, the overall break-even point will decrease, but the break-even point for other products with lower contribution margins will increase.

In a Multi-Product Firm, If the Sales Mix Changes, the Break-Even