Gross Margin and Contribution Margin Income Statements
Larker Manufacturing’s cost accountant has provided you with the following information for January operations:
|
Direct materials |
$105 per unit |
|
Fixed manufacturing overhead costs |
$675,000 |
|
Sales price |
$395 per unit |
|
Variable manufacturing overhead |
$60 per unit |
|
Direct labor |
$120 per unit |
|
Fixed marketing and administrative costs |
$585,000 |
|
Units produced and sold |
30,000 |
|
Variable marketing and administrative costs |
$24 per unit |
Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.