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

Budgetary controls, BUDGETARY CONTROLS Control in a business is the pro...

BUDGETARY CONTROLS Control in a business is the process of guiding organization into viable patterns of activity in an environment. The main purpose of a control system is to m

Gather data about alternatives, Gather Data about Alternatives When pot...

Gather Data about Alternatives When potential areas of activity are specified, management must assess the potential growth rate of the activities, the capability of the company

Implied interest rate, Suppose the spot price of gold is $1700 per ounce. T...

Suppose the spot price of gold is $1700 per ounce. The futures price for delivery in six months is $1712, while the futures price for delivery in one year is $1720. The interest ra

Case study, Anderson Nuclear Power Plant will be "mothballed" at the end of...

Anderson Nuclear Power Plant will be "mothballed" at the end of its useful life (approximately 20 years) at great expense. The expense recognition principle requires that expenses

Determine the stages in activity based costing, Stages in activity based co...

Stages in activity based costing The different stages in activity based costing are listed below and are shown in figure below. 1) Identification of the activities that may

Budgets and human behaviour, what are the most effective management styles ...

what are the most effective management styles in an organisation

What are the limitation of performance budgeting, What are the Limitation o...

What are the Limitation of performance budgeting 1) It dose not facilitate qualitative evaluation. 2) The success depends on the well organized departments, but this may not b

Advantages-limitations-dynamic programming, Advantages and Limitations of D...

Advantages and Limitations of Dynamic Programming Advantages: (1) In certain types of problems such as inventory control management, Chemical Engineering design, dynamic

Evaluate average duration of the production run, A manufacturing  company ...

A manufacturing  company  needs  2500 units  of a particular component every  year. The  company buys  it at the rate of Rs. 30 per  unit.  The order processing cost for this part

Decision - making, Decision Making Some managers appear to have an...

Decision Making Some managers appear to have an intuitive sense of good decision making. The reality is that good decision making is hardly ever done by intuition. Consist

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