BUSINESS FINANCE I Dersi Cost-Volume-Profit (CVP) Analysis soru detayı:

PAYLAŞ:

SORU:

Why is break-even analysis more complex in a multi-product company compared to a single product business?


CEVAP:

Companies produce and sell more than one product to increase their profits. In a multi-product company break-even analysis is more complex compared to a single product business. The reason lies in the fact that each product has a different price, a different cost structure and a different contribution margin. Therefore, the break-even point of a multi-product company is determined according to the sales mix of these multi products.