Sibrel Inc., a manufacturing company, has provided the following financial data for September:
Sales$590,000
- Variable production expenses $106,000
- Variable selling expense$18,000
- Variable administrative expense$78,000
- Fixed production expense$145,000
- Fixed selling expense$72,000
- Fixed administrative expense132,000
The company had no beginning or ending inventories.
Required:
a) Prepare an income statement in good form for September using the traditional approach.
b) Prepare an income statement in good form for September using the contribution approach.