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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Business

Emely Young

6 March, 02:33

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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Alissa Compton · 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