Solution-Prepare contribution margin income statement

Prepare contribution margin income statement

Reference no: EM13552712

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	42,500
Total revenues and costs
Sales revenue	$33,000
Direct material costs	8,500
Direct labor costs	4,250
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.

Reference no: EM13552712

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Prepare contribution margin income statement

Reference no: EM13552712

Reference no: EM13552712

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