Business applications of cost/volume/profit analysis includes but not limited to: Question 9 options: The decision to purchase or repair the machinery is based on the contribution margin concept. The decision to drop old product(s) and add new product(s) in the portfolio of products and product lines.is taken based on the contribution margin calculated under the costing system. The decision whether the purchase of the asset is beneficial or not. estimating the impact of fixed costs and sales volume change on operating profits. All of the above are applications of CVP analysis