One implication of cost-volume-profit analysis is that companies with higher per-unit contribution margins will have higher break-even points.

Question

Quizplus · Accepted Answer

Companies with higher per-unit contribution margins will have lower break-even points. This is because a higher contribution margin means that more revenue is available to cover fixed costs, resulting in a lower level of sales required to break even.

One Implication of Cost-Volume-Profit Analysis Is That Companies with Higher