Certified Management Accountant Practice Exam 2025 - Free CMA Practice Questions and Study Guide

To calculate the multi-product breakeven point in sales dollars, it is important to understand how fixed costs and contribution margin interact in a scenario with multiple products. The method involves dividing total fixed costs by the weighted average contribution margin ratio.

The weighted average contribution margin ratio is derived from the contribution margin ratios of the individual products, taking into account the sales mix of those products. This allows for a comprehensive approach to determine how much revenue must be generated to cover all fixed costs across multiple products.

When fixed costs are divided by this weighted average contribution margin ratio, the result indicates the total sales dollars needed to break even. This approach effectively incorporates the sales proportions of different products into the calculation, providing a more accurate picture of the overall breakeven point across various offerings.

The other choices do not align with the correct calculation method. The second choice suggests using total contribution margin divided by the contribution margin ratio, which doesn't yield the necessary breakeven point in sales dollars. The third option appears to focus on a per-unit calculation without considering the multi-product dimension. Lastly, the fourth choice misapplies fixed and variable costs without providing a mechanism to relate these to sales revenue.