Using or not using the contribution margin for cost-volume-profit computations will not change the resulting amount of breakeven units in a given situation.

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Quizplus · Accepted Answer

This is true. The contribution margin is simply the difference between sales and variable costs. Using it or not using it in cost-volume-profit computations will not affect the calculation of breakeven units, which is based only on fixed costs, selling price, and variable costs per unit. However, using the contribution margin can provide additional insights into the profitability and sensitivity of a business's operations to changes in sales volume.

Using or Not Using the Contribution Margin for Cost-Volume-Profit Computations