Cost-volume-profit (CVP) analysis is a key factor in many decisions,

including choice of product lines, pricing of products, marketing strategy, and use of productive facilities. A calculation used in a CVP analysis is the breakeven point. Once the breakeven point has been reached, operating income will increase by the

– A.Contribution margin per unit for each additional unit sold.
– B.Fixed costs per unit for each additional unit sold.
– C.Gross margin per unit for each additional unit sold.
– D.Variable costs per unit for each additional unit sold.