Term used to designate break-even sales when a company sells more than one product or service. A break-even point for all the products or services combined can be determined, based on the expected Sales Mix and the composite or weighted average unit contribution margin. For example, assume that
Then composite (or weighted average) unit contribution margin is ($0.40)(.6) + ($0.875)(.4) = $0.59. The break-even point for both products combined is $7600/$0.59 = 12,881 units. See also Weighted Average Contribution Margin.
