Prepare a gross margin income statement and a contribution


Gross Margin and Contribution Margin Income Statements

Tosca Beverages reports the following information for July:

Units produced and sold

18,800

 

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 18,800 units

0.92

 

Variable marketing and administrative costs

0.48

 

Fixed marketing and administrative costs

 

based on a volume of 18,800 units

1.00

 

Required

Prepare:

a. A gross margin income statement.

b. A contribution margin income statement.

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Cost Accounting: Prepare a gross margin income statement and a contribution
Reference No:- TGS0813501

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