Answer:
Total contribution margin is an important assumption in multiproduct CVP analysis.
B. False
Explanation:
The individual products' contribution margins are more important in order to conduct the multiproduct CVP analysis. This is because the analysis of the CVP is carried out separately for each product line. The implication is that during the CVP analysis, the total contribution margin is never considered. It becomes useful when you want to conduct the CVP analysis for the whole firm.
