When Calculating the Break-Even Point in a Multi-Product Environment, Which

question 3

Multiple Choice

When calculating the break-even point in a multi-product environment, which of the following statements is false?

• A) The contribution margin per unit for each product needs to be determined.
• B) Total fixed costs need to be determined.
• C) Each product is assumed to count for an equal percentage of total sales.
• D) The weighted-average contribution margin per unit needs to be determined.

---

Definitions:

Organisation's Product

The result of a company's efforts, whether it's a tangible good, service, or digital offering, created to fulfill customer needs.

Small Work Group

A limited number of individuals assembled to perform tasks or achieve specific goals, characterized by close interaction and collaboration.

Non-Managerial Workers

Employees within an organization who are not in charge of supervising others and focus on executing tasks rather than managing.

Team Leader

A team leader is someone who provides guidance, instruction, direction, and leadership to a group for the purpose of achieving a key result or group of aligned results.