Abstract
Cost-volume-profit (CVP) analysis is one of the most common-and-important chapters in an introductory managerial accounting course. While a CVP analysis for a single-product company is relatively easier to be illustrated, the CVP analysis for a multi-product company necessarily takes extra steps to illustrate. For the case of a multi-product company having a sales mix ratio among their products, this study developed a micro approach to the handling of decimals, if appearing, when the company finds their break-even point and target profit point. This study exemplifies how the developed approach gets to closer answers to a break-even point and a target profit point than an existing approach.
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