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Home Q & A Board Other Fields Homework Help Business Accounting
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calcrismore calcrismore
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What is meant by the term "sales mix"? What is the profit formula for a company with multiple products?
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Managerial Accounting

Managerial Accounting


Edition: 4th
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channy40channy40
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Most companies produce or sell more than one type of product. Companies that sell multiple products need to know what results are required for the company, not individual products, to achieve certain targets. Sales mix is the proportional sales of each product relative to total sales of all products.

The CVP formula for a company with multiple products is (Contribution margin × units of 1st product) + (Contribution margin × units of 2nd product) - Fixed costs = Operating income. If more than two products exist, the formula continues as (Contribution margin × units of n-th product).
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calcrismore Author
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1 months ago
Thanks
Turboturner
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Yesterday
Good timing, thanks!
Transonic
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2 hours ago
Smart ... Thanks!
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