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A firm with multiple products with a proportional sales mix will determine breakeven based on: the contribution margin per unit for the entire company. the
A firm with multiple products with a proportional sales mix will determine breakeven based on:
the contribution margin per unit for the entire company.
the allocation of the fixed costs for each product, based on their contribution margin ratio.
the weighted average contribution margin ratio for the entire company.
the contribution margin ratio for each product and then sum these.
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