Prepare a gross margin income statement

Reference no: EM1348587

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.

Please note the difference in unit produced and sold

Reference no: EM1348587

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