Gebler Company sells a product for $ 70 per unit. Variable costs are $ 25 per unit, and fixed costs are $ 2 comma 500 per month. The company expects to sell 570 units in September. Prepare an income statement for September using the contribution margin format.

Question

Alejandro Phillips

Business

28 November, 07:53

Gebler Company sells a product for $ 70 per unit. Variable costs are $ 25 per unit, and fixed costs are $ 2 comma 500 per month. The company expects to sell 570 units in September. Prepare an income statement for September using the contribution margin format.

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Malachi Meza · Answer 1

Instructions are listed below

Explanation:

Giving the following information:

Gebler Company sells a product for $ 70 per unit.

Variable costs are $ 25 per unit.

Fixed costs are $ 2500 per month.

The company expects to sell 570 units in September.

Contribution income statement:

Sales = 70*570 = $39,900

Variable costs = 570*25 = 14250

Contribution margin = 25,650

Fixed costs = 2500

Net income = $23,150