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| 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. |