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Gross Margin and Contribution Margin Income Statements
Tosca Beverages Reports the following information for July:
Units produced and sold 18,800.00Per unit revenue and costs:Sales revenue $3.20Direct material costs 0.20Direct labor costs 0.16Variable manufacturing overhead 0.06Fixed manufacturing overhead basedon a volume of 18,000 unites 0.92Variable marketing and administrative costs 0.48Fixed marketing and administrative costsbased on a volume of 18,000 unites 1.00
Required:
Prepare:
A. A gross margin income statement
B. A contribution margin income statement
If our forecast turns out to be right, and it's price earnings ratio does not change, our stock price one year from now could be dollar 35.48?
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