how does the sales mix affect CVP
Sales mix affects the Cost volume profit mix in terms of weighted average contribution margin and break-even point. The weighted average contribution margin is calculated by multiplying contribution margin of each product with sales mix percentage. The beak-even point is calculated by dividing total fixed cost by weighted average contribution margin ratio ( for sales value) or weighted average contribution margin per unit (for sales unit). Below is the impact of sales mix on contribution margin and break-even analysis
· The higher the sales mix percentage of the product having higher contribution margin , the lower is the break-even point due to higher weighted average contribution margin ratio
· The lower the sales mix percentage of the product having higher contribution margin , the higher is the breakeven point due to lower weighted average contribution margin ratio
A firm should always try to improve the sales mix percentage of product having higher contribution to keep its break-even point lower and manage its profitablity
Explain how a shift in the sales mix can affect the break-even point and net operating income. Please explain with some examples.
What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP analysis? PLEASE BE VERY DETAILED :)
If the __________ changes, so does the _______________. A. sales mix; breakeven point B. sales mix; contribution margin per unit. C. horizontal mix; breakeven point. D. horizontal mix; contribution margin ratio
What is the marketing mix? Select an organization or brand. How does your selected organization use the different components of the marketing mix? How does the marketing mix affect the development of your selected organization's marketing strategy and tactics?
how does customer preference affect real estate home sales?
how does customer choice affect real estate home sales?
Uncertainty regarding costs, prices, and sales mix affect the break-even point. True or False?
how does customer preference and customer choice affect real estate sales?
if one does not consume an adequate mix of recommended nutrients (proteins, lipids and carbohydrate) how will this affect energy metabolism and weight status
-How does PH affect nursing? -How does cellular communication affect nursing? -How does cellular respiration affect nursing?