This video shows you how to calculate the break-even point when a company sells multiple products or provides multiple services.

When a company sells more than one type of product or provides more than one type of service, you need to first calculate a weighted-average Unit Contribution Margin. Then you divided the total fixed cost by the weighted-average Unit Contribution Margin to get the break-even point (in terms of units).

The accuracy of the break-even point is dependent on the accuracy of the sales mix (e.g., the percent of the company’s sales that are expected to be composed of each product).