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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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  1. 6 March, 05:24
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    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
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