Question: Why is it necessary to calculate a weighted-average contribution margin ratio for a multiproduct company when calculating the break-even point for that company? Why cant

Why is it necessary to calculate a weighted-average ratio for a multiproduct company when calculating the break-even point for that company? Why can’t all of the products’ ratios just be added together and averaged?

Step by Step Solution

★★★★★

3.49 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

A company that sells more than one product must calculate each products contribu... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

444-B-M-A-C-V-P (2112).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Explain how to calculate a weighted average contribution margin per unit.

Why is it necessary to use comparative balance sheets, a current income statement, and certain transaction data in preparing a statement of cash flows?

Why is it necessary to convert accrual-based net income to cash-basis income when preparing a statement of cash flows?

7-69 Discussion Questions 1. Define breakeven point. Why is the breakeven point important to managers? 2. Describe four different ways cost-volume-profit analysis could be useful to managene material...

why is it necessary to calculate a weighted-average contribution margin ratio for a multi product company when calculating the breakeven point for that company? Why can't all of the products...

Please help with Part IV: preparing a balance sheet. Below are Part I - III for reference. [Part II was answered by Sonali] PART I Premier Ties is a division of Menswear, International. The division...

Please help with Part III: preparing a cash budget. Below are Part I & II for reference. [Part II was answered by Sonali]. PART I Premier Ties is a division of Menswear, International. The division...

Please complete part 3. Parts 1 and 2 have already been answered and their data is shown below for reference Premier Ties is a division of Menswear, International. The division has an exclusive...

hello. Can you help explain this in an excel spreadsheet. Citrus company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit...

The first production department of Stone Incorporated reports the following for April. Direct Materials Conversion Units Beginning work in process inventory 80,000 Percent Complete 60% Percent...

For the reaction 2HBr(g) + C2(g) 2HCI(g) + Br2(g) AH - -81.1 kJ and AS =-1.2 J/K The maximum amount of work that could be done when 2.27 moles of HBr(g) react at 259 K, 1 atm is kJ. Assume that AH...

The sloop in figure is rigged slightly differently from the one in Problem 17. The mass of the mast is 150 kg and the tension in the forestay is again 1000 N. Find the tension in the backstay and the...

44. LO.8 Christie is the preparer of the Form 1120 for Yostern Corporation. On the return, Yostern claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that...

LO.1 Indicate whether the following statements apply to a pension plan (P), a profit sharing plan (PS), both (B), or neither (N): a. Forfeited amounts can be used to reduce future contributions by...

How does opportunity cost enter into the make or buy decision?

Give at least four examples of possible constraints.

Cash flows for projects F and G are given below. Cash Flows, ($) Project C0 C1 C2 C3 C4 C5 F 9,000 + 6,000 + 5,000 + 4,000 0 0 G 9,000 + 1,800 + 1,800 + 1,800 + 1,800 + 1,800 The cost of capital for...

When the XYZ Company purchases background information from SMMA Analytics, LLC on the market, industry, etc., to help aid in their SMM decision - making process, they have purchased the following...

The number of new applicants (N = 1000) for four (4) types of Life Insurance policies are shown in the Table below. insurance policy O = observed expected annual renewal 240 specialized 160 universal...