Multiple product scenarios, Cost Accounting

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Break-even analysis can be used to work out either a break-even volume or revenue, as per given a multiple product scenario. This is achieved using 'average contribution per unit' or 'average C/S ratio per unit' for all products together.

This calculation will only work providing sales mix remains constant. Change the mix and C/S ratio or contribution per unit of the mix of products will change; thus you would need to again work out the break-even volume or revenue.

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