It is impossible to calculate the break-even point for individual products in a multiple product firm because many of the fixed costs are common to a number of products.

Question

Quizplus · Accepted Answer

While it can be more complex to calculate the break-even point for individual products in a multiple product firm due to shared fixed costs, it is not impossible. Allocation methods can be used to apportion shared costs to different products, allowing for the calculation of individual product break-even points.

It Is Impossible to Calculate the Break-Even Point for Individual