Solution-Gross margin and contribution margin income

Gross margin and contribution margin income statements

Reference no: EM13545575

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.

Reference no: EM13545575

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Gross margin and contribution margin income statements

Reference no: EM13545575

Reference no: EM13545575

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