Cost-volume-profit (CVP)analysis is more complicated for organizations with multiple products because typically each product has a different contribution margin ratio.Multiple products makes in necessary to develop a weighted-average contribution margin in order to calculate break even.

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This is because each product has a different selling price, variable cost, and contribution margin. Therefore, when calculating break even or target profit levels, a weighted-average contribution margin must be used to take into account the different contribution margins of each product.

Cost-Volume-Profit (CVP)analysis Is More Complicated for Organizations with Multiple Products