Question

Which of the following is true regarding a company that offers more than one product?

a. it has one unique breakeven point
b. the breakeven point is dependent on sales mix assumptions
c. breakeven should be found using a simple average contribution margin
d. breakeven should be found for each product individually

Answer 1

When a company offers more than one product, the breakeven point should be found for each product individually.

Step-by-step explanation:

When a company offers more than one product, the correct statement regarding the breakeven point is that breakeven should be found for each product individually. Each product has its own cost structure and sales mix, which means that each product will have its own breakeven point. Finding the breakeven point for each product will help the company make informed decisions about pricing, production, and profitability.