A break-even point can be found on a per-unit basis or as a dollar amount, depending upon whether a per-unit contribution margin or a contribution margin ratio is applied A specialized income statement, the Contribution Margin Income Statement, can be useful in looking at total sales and total contribution margin at varying levels of activity

Contribution margin can be used to calculate how much of every dollar in sales is available to cover fixed expenses and contribute to profit Contribution margin can be expressed on a per-unit basis, as a ratio, or in total

break-even point — dollar amount (total sales dollars) or production level (total units produced) at which the company has recovered all variable and fixed costs; it can also be expressed as that…. sensitivity analysis — what will happen if sales price, units sold, variable cost per unit, or fixed costs change. contribution margin — amount by which a product’s selling price exceeds its total variable cost per unit. contribution margin ratio — percentage of a unit’s selling price that exceeds total unit variable costs.