  We use a sample of 69726 galaxies from the SDSS to study the variation of the
bimodal color-magnitude (CM) distribution with environment. Dividing the galaxy
population by environment (Sigma_5) and luminosity (-23<M_r<-17), the u-r color
functions are modeled using double-Gaussian functions. This enables a
deconvolution of the CM distributions into two populations: red and blue
sequences. The changes with increasing environmental density can be separated
into two effects: a large increase in the fraction of galaxies in the red
distribution, and a small color shift in the CM relations of each distribution.
The average color shifts are 0.05+-0.01 and 0.11+-0.02 for the red and blue
distributions, respectively, over a factor of 100 in projected neighbor
density. The red fraction varies between about 0% and 70% for low-luminosity
galaxies and between about 50% and 90% for high-luminosity galaxies. This
difference is also shown by the variation of the luminosity functions with
environment. We demonstrate that the effects of environment and luminosity can
be unified. A combined quantity, Sigma_mod = Sigma_5/Mpc^{-2} + L_r/L_{-20.2},
predicts the fraction of red galaxies, which may be related to the probability
of transformation events. Our results are consistent with major interactions
(mergers and/or harassment) causing galaxies to transform from the blue to the
red distribution. We discuss this and other implications for galaxy evolution
from earlier results and model the effect of slow transformations on the color
functions.
