Question
The following is Starfish Corporation's contribution format income statement for December 2023: Sales $1,000,000 Less: Variable expenses 300,000 Contribution margin 800,000 Less: Fixed expenses 400,000
The following is Starfish Corporation's contribution format income statement for December 2023:
| Sales | $1,000,000 |
| Less: Variable expenses | 300,000 |
| Contribution margin | 800,000 |
| Less: Fixed expenses | 400,000 |
| Before-tax profits | $400,000 |
The company had no beginning or ending inventories. The company produced and sold 10,000 units in December 2023.
Required:
Assuming no change in either the cost structure or the average selling price, prepare a contribution format income statement for January, 2024 assuming production and sales of 7,500 units for Starfish Corporation.
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Profit First For Dentists Proven Cash Flow Strategies For Financial Freedom
Authors: Barbara Stackhouse, Drew Hinrichs, Mike Michalowicz
1st Edition
1735907804, 978-1735907802
