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    Gross Margin & Contribution Margin Income Statement

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    Gross Margin and Contribution Margin Income Statements

    Tosca Beverages Reports the following information for July:

    Units produced and sold 18,800.00
    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 18,000 unites 0.92
    Variable marketing and administrative costs 0.48
    Fixed marketing and administrative costs
    based on a volume of 18,000 unites 1.00



    A. A gross margin income statement

    B. A contribution margin income statement

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    Solution Summary

    The solution prepares a gross margin income statement and contribution margin income statement.