If a company sell multiple products or services an assumption needed for CVP analysis is that the sales mix remains constant.

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In Cost-Volume-Profit (CVP) analysis, when a company sells multiple products or services, it is assumed that the proportion of each product or service sold (the sales mix) remains constant. This assumption is necessary to simplify the analysis and make it possible to predict how changes in volume will affect profits.

If a Company Sell Multiple Products or Services an Assumption