In break-even analysis, the contribution margin is the break-even point expressed in units.

Question

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The contribution margin is not the break-even point expressed in units. The contribution margin is the amount of revenue remaining after all variable costs have been deducted. The break-even point expressed in units is the number of units that must be sold in order to cover all fixed and variable costs without making a profit or loss.

In Break-Even Analysis, the Contribution Margin Is the Break-Even Point