The same CVP formulas that are used to perform CVP analysis for a company with a single product can be used for any company that sells more than one product,as long as a company uses the weighted-average contribution margin of all products,rather than the contribution margin of a sole product.

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Quizplus · Accepted Answer

This statement is true. The CVP formulas can be applied for companies selling more than one product by using the weighted-average contribution margin of all products. This helps in understanding the overall profitability of the company, rather than just focusing on individual products.

The Same CVP Formulas That Are Used to Perform CVP