When is it useful or sometimes necessary to compute the break-even point in terms of sales dollars rather than

units of output?

What will be an ideal response?

For the multiproduct firm, it is convenient to compute the break-even point in terms of sales dollars rather than units
sold. Sales, in effect, become a common denominator associated with a particular product mix. Furthermore, an
outside analyst might not have access to internal unit cost data. He or she may, however, be able to obtain annual
reports for the firm. If the analyst can separate the firm's total costs as identified from its annual reports into their fixed
and variable components, he or she can calculate a general break-even point in sales dollars.