Multiproduct CVP analysis based on contribution rules
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Universidad de La Rioja
info
ISSN: 0925-5273
Datum der Publikation: 2001
Ausgabe: 73
Nummer: 3
Seiten: 273-284
Art: Artikel
Andere Publikationen in: International Journal of Production Economics
Zusammenfassung
The basic cost-volume-profit (CVP) model - linear, non-stochastic and restricted to one product - has been the subject of research work aimed at relaxing these limiting assumptions. Regarding its extension to a multiproduct situation, the two alternatives are to use a standard mix, or to apply linear programming. This paper develops an alternative model for multiproduct CVP. It uses data provided by ABC systems designed to keep track of variable and fixed costs, and requires the model user to formulate a contribution rule that will allow to compute, for each product, the output required to achieve a given (target) profit. © 2001 Elsevier Science B.V. All rights reserved.