While preparing a contribution margin income statement, the costs are shown into which of the two categories?

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The costs are shown in variable and fixed categories in a contribution margin income statement. This is because the contribution margin is calculated by deducting only the variable costs from the revenue, while the fixed costs are not deducted from the revenue but shown separately. Therefore, the costs are separated into variable and fixed categories to calculate the contribution margin and determine the profitability of the product or service.

While Preparing a Contribution Margin Income Statement, the Costs Are