Unit Breakdown Penalty

[Green]

You are correct. It affects the probability of disruption and also fatigue accumulation. The manual says;

"When Morale Checks are applicable, they are determined based on a probability using the given loss as:

loss / (loss + base-value)

where the base-value depends on the size of the unit and is:
• 5 for platoon and uncombined company units.
• 10 for combined company units consisting of 2 subunits.
• 15 for battalions and combined company units consisting of 3 or more subunits.

Thus, a battalion unit that takes a loss of 15 men has a 50% chance of requiring a morale check and a battalion unit that takes a loss of 60 men has about an 80% chance of requiring a morale check"

And...

"Fatigue is gained from losses in combat. The factor used to determine Fatigue accumulation depends on the size of the unit.

• For Battalions, the Fatigue accumulation factor is 2.
• For Companies and Platoons, the Fatigue accumulation factor is 6

(When 2 Companies are Combined, the factor is 4 and when 3 or more Companies are Combined, the factor is 2)."

Hope that helps.