Cost-Volume-Profit Analysis and Variable Costing for Management Analysis. Cost-Volume-Profit Analysis is about formulas and ratios used to determine the profitability of individual products and/or operations.Variable Costing is a way to calculate profitability of a firm's operations by either calculating the contribution margin or gross profit.How does the auto company Mercedes-Benz apply the contribution margin might be used to determine the profitability of their product and how it's used to make the operations more profitable when it come to the high-end luxury auto production?