Gross Margin and Contribution Margin Income Statements
The following data are from the accounting records of Cunha Products for year 2 (all figures in thousands of dollars).
|
Units produced and sold
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42,500
|
|
Total revenues and costs
|
|
|
Sales revenue
|
$33,000
|
|
Direct material costs
|
8,500
|
|
Direct labor costs
|
4,250
|
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Variable manufacturing overhead
|
2,125
|
|
Fixed manufacturing overhead
|
5,500
|
|
Variable marketing and administrative costs
|
1,700
|
|
Fixed marketing and administrative costs
|
4,000
|
Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.