Blueprint Problem: CVP and the Contribution Margin Income Statement For planning and control purposes, managers have a powerful tool known as cost-volume-profit (CVP) analysis. CVP shows how revenues, expenses, and profits behave as volume changes. In CVP analysis, costs are classified according to behavior: variable or fixed. Costs are classified by behavior on the income statement in CVP analysis to arrive at operating income. This format is known as the contribution margin income statement. Complete the following table to illustrate the format. Contribution margin is calculated first. It is the difference between sales and variable costs. Contribution margin is the amount that is available to pay costs. After those costs are paid, anything remaining from contribution margin becomes In CVP analysis, it is useful to state the contribution margin income statement as the following formula: Sales-Variable Costs-Fixed Costs- Operating Income CVP and the Break-Even Point Review the following concepts about CVP analysis and break-even point and then complete the related statements