Multiple Product Breakeven Point (weighted average)

This video shows an example problem computing multiple product breakeven point using weighted average. For more help with accounting, please visit my website AccountingInFoc....

[@christinascott569]

I have been trying to understand this for DAYS with more complicated examples. It wasn't until I watched this one that I finally understood it. thank you so much

[@allkristiningram]

Christina Scott I'm so glad you were able to understand the concept. Sometimes a more simple approach helps.

[@kinashraf1975]

i am from egypt and you at your place wherever you are i don't know and you did teach me and helped me sooooooooo much can't say thanks enough .....keep inlight life with help thank you so much

[@allkristiningram]

Ashraf Abbas Thank you so much for your comment. I'm glad you found the video helpful!

[@ChrisFlores16]

I was stuck on a similar problem and I just could not understand the explanation on other sources. Glad I found this video! Thank you so much, this really helped me!

[@allkristiningram]

Christina Flores I'm so glad you found the video helpful!

[@levontrd8756]

After searching all over and came to this video. Absolutely fantastic. i tried this on my own excel sheet and got the results. This video was done long back probably you could redo it again with atleast 10 products in an excel sheet. thanks again.

[@allkristiningram]

I'm glad it was helpful!

[@timothysmith8154]

You are an excellent teacher!

[@allkristiningram]

Timothy Smith Thank you! I'm glad you found the video helpful.

[@muhammadahsan8902]

This video really helped me in understanding this whole concept .I am thankful to you for uploading such an "easy to understand" video tutorial.

[@allkristiningram]

+Muhammad Ahsan You're welcome! So glad I could help. Thanks for commenting.

[@dsmyify]

Thank you very much for recording this video and making it available. It has really helped!

[@allkristiningram]

dsmyify You're welcome. I'm so glad you found it helpful!

[@nickr7691]

Thank you very much for recording this GREAT video and making it available. It has really helped! - YOU ARE THE BEST

[@allkristiningram]

You're welcome! I'm so glad it helped!

[@jemsar2]

Well done professor. Well done. I totally appreciated this video.

[@allkristiningram]

Thank you! I'm glad it was helpful for you.

[@Close2Him15]

Professor Ingram, thank you :). So easy to understand.

[@allkristiningram]

+Dan Attles you're welcome! Thank you for the very nice comment!

[@MIHomesKC]

Thank you so much for this! Very easily explained and understood.

[@allkristiningram]

You're welcome. Glad I could help!

[@sumit5562]

U saved my day

[@allkristiningram]

Your welcome

[@valeriemaynez4889]

you deserve a million dollars. you saved us."i love Kristin ingram"-my dumbass friend that requested to remain anonymous.

[@allkristiningram]

Haha! That's awesome. Thanks for the great comment!

[@ahmeditaly7394]

Excellent explanation

[@allkristiningram]

Glad it was helpful!

[@ahmeditaly7394]

@@allkristiningram are you an accountant?

[@allkristiningram]

@@ahmeditaly7394 yes I am. I own a tax and consulting firm and teach people how to become bookkeepers.

[@kimberlyhelbing]

thank you so much for helping me.

[@bookcafe1]

Precise and informative video. Thanks for sharing.

[@allkristiningram]

+bookcafe1 you're welcome. Thanks for commenting!

[@muhibullah994]

Dear mam , the word ''THANKS'' will not be enough if you were any where in Pakistan i would give you a hug.

[@allkristiningram]

Thank you!

[@Itsjana7197]

THANK YOUUUUUU!!!

[@allkristiningram]

Your welcome!

[@EduBugay]

It helped me :) Great job... Thanks to you.

[@yuniorgalardy2781]

Thanks for posting this video.

[@OgThaPlug]

Thank you

[@themightythor1160]

This is awesome! Thank you!

[@sudharsanvj8531]

Neat explanation :) Thank you !

[@allkristiningram]

You're welcome!

[@hollowkaizer7419]

Thanks very much.

[@allkristiningram]

hollow kaizer You're welcome.

[@goceification]

thanx. Very useful. This is only for Bkeven in Units?

[@allkristiningram]

If you divide by the CM ratio, you can get sales in dollars.

[@veronikalazarenko9248]

Thank you for the explanation. Everything is really clear. I have only one question. How you can count break even point if you have more than 10 products? I am really confused how to allocate Sales Mix in units or % for more than 10 products. Can you help me please.

[@allkristiningram]

You would need to calculate the contribution margin per package based on sales mix for the 10 products or calculate the weighted contribution margin ratio for the 10 products. It's the same method we use in the video, you just have more products. Excel is helpful for this because you can use formulas and automate the process.

[@veronikalazarenko9248]

So if I have 20 products, does it mean that my sale mix will look like: Product 1 - 1, Pruduct 2 - 4;.....Product 18 - 0,5; Product 19 -0,5; Product 20 -5 ? I am really confused what companies are doing with 100 products?

[@allkristiningram]

Companies with 100 products have computer systems that do the calculations for them and generally use the contribution margin ratio for total contribution margin/total sales. Most companies will also look at the company as divisions, with one or two products in a division and segmenting fixed costs (whether direct or allocated common) into that division.

[@mernanuqul]

Hello, do we always use the WA of units to calculate the Composite CM, because there are some cases where the number of units were used instead; which in this case are 3 & 7 and we multiply them by the UCM, without dividing on the result total;10. Could you please advise when we use each method??

[@allkristiningram]

merna nuqul if the lowest common multiple is 10 then you would multiply the CM of unit A by 3 and the CM of unit B by 7. Add that together to get the CM for the Package. I hope that makes sense. If not, please let me know.

[@Jeremy_Godrick]

Thankyou!

[@kidsnhoops4814]

Hi Kristen, can this videos formula be applied to an industry with multiple services and products; and if so.....how? Thanks in advance.

[@allkristiningram]

+Kids N' Hoops If you know the price and variable costs of the products and the approximate sales mix, absolutely. It is more accurate the more you can break down the fixed costs between the two products though.

[@PKyei]

+Kristin Ingram fr:Kids N'Hoops, I do know the price we charge for each service as well as our products. I am compiling a break even analysis for a start-up venture and I'm having trouble with the associated costs of the service we provide because so many things go into providing the service. I'd love to pick your brain on some of these issues.

[@allkristiningram]

***** Send me an email: help at accountinginfocus.com

[@shoaibcheragh7362]

Thank you very much, it is really helpful. But I am wondering if I want to present this in a line graph, how will it work then ?

[@allkristiningram]

A graph for this would be tough because you have multiple products. It would be easier to do one for single product. You could make a graph with sales in dollars on the x axis and profit on the y axis. The break even point would be the point at which your line intercepts the y axis.

[@shoaibcheragh7362]

Kristin Ingram Thanks a lot...really appreciate it.

[@sagarshinde4976]

Thanks 💐💐💐

[@allkristiningram]

You're welcome!

[@chaoliu7255]

thanks a lot, you teach very clear but I find there are several counting mistakes

[@allkristiningram]

Maybe there are some things that were not clear to you. Can you please let me know what you think the mistakes are so I can clarify for you.

[@chaoliu7255]

I was confusing about the result of 24000/5.2. The result which I count is 4615.38 not 5000

[@allkristiningram]

It's 26,000/5.20, not 24,000.

[@chaoliu7255]

My apology

[@stopndrop4588]

amazing

[@allkristiningram]

+Is iT IzET thanks!

[@diansapuart]

😍