In the case of a business with more than one product, a. it cannot use CVP analysis as such would be possible only if there is a single product. b. it can earn a higher-than-expected profit even if the total units sold was less than expectation. c. each of the products must use a separate CVP analysis. d. it can use CVP analysis only if the contribution margin percentages on each product are the same.
In the case of a business with more than one product, a. it cannot use CVP analysis as such would be possible only if there is a single product. b. it can earn a higher-than-expected profit even if the total units sold was less than expectation. c. each of the products must use a separate CVP analysis. d. it can use CVP analysis only if the contribution margin percentages on each product are the same.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 6E
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In the case of a business with more than one product,
a. it cannot use CVP analysis as such would be possible only if there is a single product.
b. it can earn a higher-than-expected profit even if the total units sold was less than expectation.
c. each of the products must use a separate CVP analysis.
d. it can use CVP analysis only if the contribution margin percentages on each product are the same.
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