What are the assumptions to be made for sales mix, for the calculation

1.	What are the assumptions to be made for sales mix, for the calculation of break even point?
Answer» Following assumptions are made: 1. The proportion of sales mix must be predetermined. 2. The sales mix must not change within the relevant time period. 3. All cost can be categorized as variable or fixed. 4. Sales price per unit, variable cost per unit and total fixed cost are constant. 5. All units produced are sold.

What are the assumptions to be made for sales mix, for the calculation of break even point?

Answer»

Following assumptions are made:

1. The proportion of sales mix must be predetermined.

2. The sales mix must not change within the relevant time period.

3. All cost can be categorized as variable or fixed.

4. Sales price per unit, variable cost per unit and total fixed cost are constant.

5. All units produced are sold.