For a company that sells several products,cost-volume-profit techniques cannot be used to calculate the sales volume required to yield a target level of profit.

Question

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Cost-volume-profit techniques can be used to calculate the sales volume required to yield a target level of profit for a company that sells multiple products, as long as the products have different selling prices, variable costs, and contribution margins. The overall mix of product sales affects the calculation of the break-even point and the required sales volume for a target profit level.

For a Company That Sells Several Products,cost-Volume-Profit Techniques Cannot Be