Chapter 21, Problem 20DQ

A break-even point is the point at which there is no profit or loss for the company. At break-even point total of fixed costs and variable costs is equal to the total revenue. The calculation of break-even point is very important for every business because it tells that how much of the minimum quantity will be required to produce and sell to meet the fixed and variable cost.

Single product break-even analysis means to calculate break-even point for a single product i.e. no profit or loss for that particular product.

Multi product break −even point analysis means calculation of break-even point point of no profit or loss for the overall company or all products.

To determine

In the given question, we have to determine that Apple co. should use single product break-even or multi-product break-even analysis.