C-v-p analysis – multiple products, Managerial Accounting

Assignment Help:

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

741_Untitled.jpg

Here:

αt is the sales mix of product  t.

St is the selling price of product t

Vt is the variable cost of product t.

n is the number of units of product t sold

 
BEPt units = αt (Total BEPunits)

BEP tsh. = BEPt(units) xSt

 


Related Discussions:- C-v-p analysis – multiple products

International transfer pricing, International Transfer pricing Internat...

International Transfer pricing International transfer pricing refers to the determination of prices to be charged between related persons and in particular within a multination

Estimate the total fixed cost, Question:   (a) For a business annual sa...

Question:   (a) For a business annual sales are Rs 50,000 and variable expenses are Rs 35,000 and fixed expenses are Rs 25,000. The owner wants to earn at least Rs 5,000 as pro

Cost analysis purposes, Cost Analysis purposes For purposes of cost ana...

Cost Analysis purposes For purposes of cost analysis, the desegregation of the generic value chain into individual value activities should reflect three principles that are not

Find the formula for the quarrys short-run supply curve, Let a quarry's cos...

Let a quarry's cost function of producing Q tons of stone per hour be given by TC = Q 3 - 10Q 2 + 40Q + 25, so that marginal cost function is MC= 3Q 2 - 20Q + 40. (i) Find th

Explain the interest coverage ratio, Interest coverage ratio (or debt servi...

Interest coverage ratio (or debt service ratio)  Meaning: this ratio establishes a relationship among net profits before interest and taxes and interest on long debt. Obj

Describe benchmarking, Describe Benchmarking It is the process of measu...

Describe Benchmarking It is the process of measuring products service or activities against the best level of performance which may be found either inside or outside the organi

How the tax credit will affect price and quantity , 1. In order to boost th...

1. In order to boost the housing market throughout 2009 and into 2010, the federal government offered a tax credit to first-time home buyers and some repeat buyers.

Stock turnover ratio, opening stock 19000 closing stock 21000 sales 200000 ...

opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio

Advantages and limitations of game theory, Advantages and limitations of ga...

Advantages and limitations of game theory Advantage: Game theory helps us to learn how to approach and understand a conflict situation and to improve the decision maki

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd