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29. To do CVP analysis with multiple products, you need to know the weighted average...

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29. To do CVP analysis with multiple products, you need to know the weighted average CMU (WACM) or the weighted average CM Ratio. You calculate this by calculating the total CM for the sales mix. Then divide the total CM by the amount of units in the sales mix. Using the example in #29, if the CMU or product A is $2 and the CMU for product B is $7, then the total CMU earned from the sales mix will be the "package" CM. To get the WACM, divide S15 by the number of units in the sales mix, which is This is called So the WACM is $3. 4 30. To calculate BE, divide the total FC by the package CM. Suppose total FC are $15,000. Since there are 4 units of How many packages would you have to sell? A in the package, this means you must sell units of B to break even units of A and 31. Another way to do this is to calculate the total number of units necessary to breakeven You do this by dividing FC by the WACM. So, in this case, $15,000/3-5,000 total units. Now, multiply the total units by the sales mix to get how many of each product you need to sell. For product A, 5,000 x 4/5-4,000 units. For product B

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