Question

For a company that sells several products, cost-volume-profit techniques cannot be used to calculate the sales volume required to yield a target level of profit.

Answer 1

False

Step-by-step explanation:

For a company that sells several products, cost-volume-profit techniques can be used to calculate the sales volume required to yield a target level of profit if the sales-mix is known.

Sales mix of the products of a multi-product manufacturing company helps to confront the challenges of cost-volume-profit computations. It requires a redefinition of what each unit will be. Unit will be the sales mix which contains the desired number of units of all products, and this sales mix will yield the composite ''unit contribution''