Gebler Company sells a product for $ 70 per unit. Variable costs are $ 25 per unit, and fixed costs are $ 2 comma 500 per month

Question

3 years ago

8

. The company expects to sell 570 units in September. Prepare an income statement for September using the contribution margin format.

1 answer:

Lynna [10] · Answer 1 · 2022-03-18T10:55:59+03:00

Answer:

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

Gebler Company sells a product for $ 70 per unit. Variable costs are $ 25 per​ unit, and fixed costs are $ 2 comma 500 per month