What do you understand by sales mix? State the assumptions made for th

1.	What do you understand by sales mix? State the assumptions made for the calculation of break even point for sales mix.
Answer» Sales mix is the proportion in which two or more products are sold. For the calculation of break even point for sales mix, 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 do you understand by sales mix? State the assumptions made for the calculation of break even point for sales mix.

Answer»

Sales mix is the proportion in which two or more products are sold. For the calculation of break even point for sales mix,

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.