Bruster Company sells its products for $66 each.The current production level is 25,000 units,although
only 20,000 units are anticipated to be sold.

Required:
a.Prepare an income statement using absorption costing in the gross margin format.
b.Prepare an income statement using variable costing in the contribution margin format.

Question

Bruster Company sells its products for $66 each.The current production level is 25,000 units,although
only 20,000 units are anticipated to be sold.
  
Required:
a.Prepare an income statement using absorption costing in the gross margin format.
b.Prepare an income statement using variable costing in the contribution margin format.

Quizplus · Accepted Answer

The Answer of Bruster Company sells its products for $66 each.The current production level is 25,000 units,although
only 20,000 units are anticipated to be sold.
  
Required:
a.Prepare an income statement using absorption costing in the gross margin format.
b.Prepare an income statement using variable costing in the contribution margin format.

Bruster Company Sells Its Products for $66 Each