Break even analysis with multiple products is a business tool used to assess the potential profitability of different product lines. By conducting this analysis, businesses can determine the ideal mix of products for maximum profitability and identify the prices that need to be charged in order to recoup costs. The process looks at the various cost elements associated with each product line, including materials, labor, overhead, taxes, marketing and other administrative expenses. It also takes into account fixed costs and variable costs, as well as any additional resources needed to manufacture each product. With break even analysis with multiple products, businesses have a powerful tool for optimizing their product mix and prices.