A CVP income statement shows contribution margin instead of gross profit.

Name: A CVP income statement shows contribution margin instead of gross profit.
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In a CVP income statement, the contribution margin is used instead of the gross profit to show how much revenue is left over after accounting for variable costs. Gross profit, on the other hand, only subtracts the cost of goods sold (a type of variable cost) from revenue.

A CVP Income Statement Shows Contribution Margin Instead of Gross