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Multi-product CVP Analysis - Charts

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Mind Map on Multi-product CVP Analysis - Charts, created by Sue Evans on 13/05/2018.
Sue Evans
Mind Map by Sue Evans, updated more than 1 year ago
Sue Evans
Created by Sue Evans about 7 years ago
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Resource summary

Multi-product CVP Analysis - Charts
  1. PV Charts show:
    1. The overall company breakeven point
      1. Which products should be expanded in output (the most profitable in terms of C/S ratio)
        1. Which products, if any, should be discontinued
          1. What effect changes in selling price and sales revenue would have on breakeven point and profit
            1. The average profit (the solid line which joins the two ends of the dotted line) earned from the sales of the products in the mix
            2. Charts
              1. Breakeven Charts
                1. Calculate total revenue and total costs for the mix of products and plot on graph. Calculate the BEP using WACS Ratio
                2. PV Charts
                  1. Plot the weighted average line by starting at the Fixed Costs and cross the x axis at the breakeven point and ending at total sales revenue
                    1. Calculate cumulative revenues and cumulative profit and plot in order of C/S ratio
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