Gibson Manufacturing Company established the following standard price and cost data.

Sales price

Variable manufacturing cost

Fixed manufacturing cost

Fixed selling and administrative cost

$$8\mathrm{.}10$ per unit

$3\mathrm{.}70$ per unit

$2,500$ total

$1,000$ total

Gibson planned to produce and sell $2,800$ units. Actual production and sales amounted to $3,000$ units.

Required

a$.$ Prepare the pro forma income statement in contribution format that would appear in a master budget.

b$.$ Prepare the pro forma income statement in contribution format that would appear in a flexible budget.

Complete this question by entering your answers in the tabs below.

Prepare the pro forma income statement in contribution format that would appear in a master budget.