Construct gross margin income statement

Question

Problem:

Gross Margin and Contribution Margin Income Statements

Tosca Beverages Reports the following information for July:

Units produced and sold                            18,800.00
Per unit revenue and costs:
Sales revenue                                             $3.20
Direct material costs                                     0.20
Direct labor costs                                          0.16
Variable manufacturing overhead                   0.06
Fixed manufacturing overhead based
on a volume of 18,000 unites                         0.92
Variable marketing and administrative costs    0.48
Fixed marketing and administrative costs
based on a volume of 18,000 unites                1.00

Required:

Prepare:

A. A gross margin income statement

B. A contribution margin income statement