Method number 1. Include each product's traceable fixed costs and an allocated share of the common fixed costs in the numerator of each break-even calculation. The common fixed costs would be allocated to the three products using sales dollars as the allocation base. Method number 2: Only include each product's traceable fixed costs in the numerator of each break-even calculation.

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The first method This technique incorporates both traceable fixed expenses and a proportionate porti... View the full answer