1. How does a contribution margin income statement differ from a gross margin income statement? Under what circumstance would you use a value as opposed to a gross margin statement? Under what circumstance would use a gross margin as opposed to a from a contribution statement income statement? What distinguishes a value income statement from a contribution margin income statement?

2. Comment on the following quotation: "The assumptions of CVP analysis are so simplistic that no firm would make a decision on CVP alone. Therefore, there is no reason to learn CVP analysis."