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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