The cost accountant for the Larsen Manufacturing Co. has provided you with the following information for the month of July:
Variable.Cost per unit Total Fixed Costs
- Direct Labor $27.50
- Direct Materials 84.75
- Manufacturing Overhead 14.25 $120,000
- Marketing Costs 5.30 50,000
- Administrative Costs 2.90 75,000
- Selling Price 210.00
Required: Assuming the company produced and sold 5,000 units, and there were no units in inventory on July1, prepare the following income statements for the month of July:
(a) Contribution margin income statement
(b) Gross margin income statement