Multi-Product Break-Even Analysis

All cost inputs are now calculated from the detailed 'Cost Account Worksheet' below.

Instructions and Key Definitions

Key Cost Definitions:

1. Common Fixed Costs: Annual costs incurred by the company that support *all* products and cannot be easily traced to a single product (e.g., rent, corporate salaries). In this simulation, these costs are **allocated** to each product based on its **Sales Mix (%)**.

2. Direct Fixed Costs: Annual fixed costs that *can* be directly traced to a specific product (e.g., a lease payment for a dedicated machine or a product manager's salary). These costs are summed up for each product.

3. Direct Variable Costs: Costs that change in total directly with the number of units produced (e.g., raw materials, direct labor, packaging). These costs are entered on a **per-unit** basis for each product.

How to Enter Data:

Worksheet Input: Use the **Cost Account Worksheet** below to itemize and input all costs for Categories 1, 2, and 3. **(All categories now support 15 accounts)**.
Product Specifics: For **Direct Fixed (2)** and **Direct Variable (3)** costs, use the **"Select Product"** dropdown menus within the worksheet to choose the product you want to enter costs for.
Table Inputs: Only the **Price** and **Sales Mix (%)** columns in the main "Product Data" table are manually editable. All cost inputs are derived from the worksheet.
Sales Mix: Ensure the **Sales Mix (%)** column totals exactly **100%** for the Break-Even calculations to run correctly.

Category 1: Common (Allocated) Fixed Costs

NOTE: This value is automatically calculated from the Category 1 section in the worksheet below.

Total Common Fixed Costs ($):

Product Data & Cost Allocation

Category 2: Direct Product Fixed Cost (Total $): **Derived from Worksheet.**

3. Direct Product Variable Cost (per unit): **Derived from Worksheet.**

Product	Price (P)	Cat 1: Allocated Common Fixed Cost	Cat 2: Direct Prod. Fixed Cost (Total $)	Total Product Fixed Cost (1 + 2)	Cat 3: Direct Prod. Variable Cost (per unit)	Sales Mix (%)	CM (P-V)	Weighted CM

Cost Account Worksheet (Itemized Inputs - 15 Accounts Each)

Enter itemized costs below. Their totals automatically update the calculation table above.

1. Common Fixed Costs (Total $)

Total: $0

Account Name | Annual Amount:

2. Direct Fixed Costs (Total $ per Product)

Select Product:

Account Name | Annual Amount:

Current Product Total: $0

3. Direct Variable Costs (Per Unit)

Select Product:

Account Name | Cost per Unit:

Current Product Per-Unit Cost: $0

Company-Wide Break-Even Summary

Total Fixed Costs Calculation

Category 1 (Common): $500,000 + Category 2 (Total Direct): $350,000

= $850,000

Weighted Avg. Contribution Margin (WACM)

$45.00

Total Break-Even Units

18,889

Total Break-Even Revenue

$1,638,889