Question

Explain why break-even analysis is of reduced value to a multi-product firm? Analyse the factors that any business should take into consideration before using break-even analysis as a basis for decision making.

Answer 1

Answer:

Calculating Break-Even Analysis in a Multi-Product Environment. When a company sells more than one product or provides more than one service, break-even analysis is more complex because not all of the products sell for the same price or have the same costs associated with them: Each product has its own margin.

Explanation:

hope it helps u

:)