In calculating the breakeven point for a multiproduct company, which of the following assumptions are commonly...
In calculating the breakeven point for a multiproduct company, which of the following assumptions are commonly made when variable costing is used? Sales volume equals production volume. Variable costs are constant per unit. A given sales mix is maintained for all volume changes.
a- I and II.
B- I, II, and III.
C- II and III.
D- I and III.
Homework Answers
Solution:
In calculating the breakeven point for a multiple product company the common made assumptions are when using variable costing:
1. Variable costs are constant per unit
2. A given sales mix is maintained for all volume changes.
Hence option C "II and III" is correct.
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