CVP Multiple Products Flashcards
1
Q
Sales mix
A
Ratio in which company’s products are sold
2
Q
Sales mix: Certain products
A
More profitable than others & therefore efforts to maximise most profitable product, should be made
3
Q
Avg. contribution per unit
A
Total Contribution of Sales Mix / Number of units of Sales Mix
4
Q
Avg. contribution ratio
A
Avg. contribution per unit / Avg. selling price of Sales Mix
5
Q
Break-even points: Units
A
FC / Avg. contribution per unit
6
Q
Break-even points: Rand
A
FC / Avg. contribution margin/ratio
7
Q
Target sales: Units
A
(FC + Profit) / Avg. contribution per unit
8
Q
Target sales: Rand
A
(FC + Profit) / Avg. contribution margin/ratio
