Andres Napkin Company sells a product for $80 per unit. Variable costs are $25 per unit, and fixed costs are $4,000 per month. Andres sold 2,000 units in October. Prepare an income statement for October using the contribution margin format
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Andres Napkin Company
Contribution Margin Income Statement
Month ended October 31, 20XX
Sales revenue ($80 x 2,000 ) $160,000
Variable costs ($25 x 2,000 ) (50,000 )
Contribution margin 110,000
Fixed costs (4,000 )
Operating income $106,000
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