Question:
Gross Margin and Contribution Margin Income Statements
Tosca Beverages reports the following information for July:
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Units produced and sold
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18,800
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|
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Per unit revenue and costs:
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|
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Sales revenue
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$3.20
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|
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Direct material costs
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0.20
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|
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Direct labor costs
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0.16
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|
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Variable manufacturing overhead
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0.06
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|
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Fixed manufacturing overhead based
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|
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on a volume of 18,800 units
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0.92
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|
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Variable marketing and administrative costs
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0.48
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|
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Fixed marketing and administrative costs
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|
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based on a volume of 18,800 units
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1.00
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Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.