C-V-P ANALYSIS – MULTIPLE PRODUCTS
The simple product CVP analysis can be extended to handle the more realistic situations where the firm produces more than one product. The objective in such a case is to produce a mix that maximizes total contribution. Total BEP units = Total fixed cost
Average CM
Here:α_{t} is the sales mix of product t.S_{t} is the selling price of product tV_{t }is the variable cost of product t.n is the number of units of product t sold BEP_{t units} = αt (Total BEP_{units})BEP _{tsh.} = BEP_{t(units)} xSt