Essay
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.Unit manufacturing costs are:
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.
Correct Answer:

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a.Absorption-costing income statement:
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