Here also, numerator is the same fixed costs. The denominator now will be weighted average contribution margin ratio which is also called weighted average P/V ratio. The modified formula is as follows:
B.E. point (in revenue) = Fixed cost
Weighted average P/V ratio
Problem Ahmedabad Company Ltd. manufactures and sells four types of products under the brand name Ambience, Luxury, Comfort and Lavish. The sales mix in value comprises the following:
Showing posts with label Breakeven Point in Sales Revenue. Show all posts
Showing posts with label Breakeven Point in Sales Revenue. Show all posts
Saturday, February 20, 2010
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