The CVP income statement classifies costs as variable or fixed and computes a contribution margin.

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The CVP (Cost-Volume-Profit) income statement is designed to provide information about the relationship between the cost structure of a company, the volume of its business activities, and its profits. It classifies costs as either variable or fixed and calculates a contribution margin. The contribution margin is the amount of revenue that remains after accounting for variable costs, and it is used to cover fixed costs and generate profits.

The CVP Income Statement Classifies Costs as Variable or Fixed