Cost-Volume-Profit Analysis of multiproduct operation: sales capacity balancing method proposal

Defining minimum necessary volumes of production and sales, as well as carrying out planning and controls are crucial for companies. In this sense, determining the sales breakeven point is essential. However, the application of Cost-Volume Profit (CVL) analysis becomes more complex when there are multiple products and indirect costs common among them. Therefore, the literature presents solutions as criteria for apportionment of indirect expenses. However, this same task can become even more complex when sales capacity constraints occur due to the interdependence between products, resulting in the production of a product in an amount below its breakeven point and that cannot be discontinued, as it is a product that enables the production of the others. This article proposes a solution to the latter scenario, contextualized in a productive system in the agribusiness sector, where restrictions on sales capacity are imposed and, at the same time, the impossibility of discontinuing the deficit product in sales. The research is classified as descriptive, carried out through a case study and with a qualitative approach. The proposed method, of balancing by sales capacities, proposes a sales strategy that respects the restrictions of the production system, while presenting a total cost less than the traditional method. The application of the proposal resulted in a 6% increase in the contribution ratio compared to the traditional method.