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.

blog comments powered by Disqus
Advertisement

Inside Dummies.com