An Example of Accounting for the Job Order Costing System
Managerial Accounting: Types of Responsibility Centers
Activity-Based Costing for Overhead Allocation

How to Prepare a Break-Even Analysis with More Than One Product

Estimate the sales mix.

Sales mix is the relative percentage of sales of each product. To figure out the sales mix, divide the sales of each type of product by total sales. The sales mix percentage of all products should always add up to 100 percent.

Suppose that fictional Acme Company sold $8 million worth of rocket-powered products and $2 million worth of giant rubber bands. To figure out the sales mix, divide the sales of each type of product by total sales. Acme’s sales mix percentage of rocket-powered products is 80 percent, while its sales mix percentage of giant rubber bands is 20 percent.

  • Add a Comment
  • Print
  • Share

Recommends

Promoted Stories From Around The Web

COMMENTS »
blog comments powered by Disqus
Going It Alone with Sole Proprietorships
How to Manage Processes with the Theory of Constraints
Which Costs Are Depreciated
Benefits of Budgeting that Relate to Business Management
Get Creative with Capital