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The following is Starfish Corporation's contribution format income statement for December 2023: The company had no beginning or ending inventories. The company produced and sold
The following is Starfish Corporation's contribution format income statement for December 2023:
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.
Sales | $1,000,000 |
Less: Variable expenses | 300,000 |
Contribution margin | 800,000 |
Less: Fixed expenses | 400,000 |
Before-tax profits | $400,000 |
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