Prepare a gross margin income statement

Assignment Help Finance Basics

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

Questions Cloud

Developmental pathway-childhood-preschool aged : Would a developmental pathway be something like exposure to maternal depression during infancy can lead to externalizing behavior in early childhood-preschool aged children, then oppositional defiant disorder?

Illustrate what is the real gdp in each year : Illustrate what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2.

Explain returns and customer complaints : Describe A shoe manufacturing company is having a problem with returns and customer complaints in their boot division

Find the magnetic force on the rod : A bicycle wheel has a diameter of 64.1 cm and a mass of 1.81 kg. suppose that the wheel is a hoop with all of the mass concentrated on the outside radius. The bicycle is placed on a stationary stand and a resistive force of 120 N is applied tangent..

Prepare a gross margin income statement : Gross Margin and Contribution Margin Income Statements Tosca Beverages reports the following information for July:

Flexibility to change budgeted costs : We want a flexible budget because costs are difficult to predict. We need the flexibility to change budgeted costs as input prices change.' Does a flexible budget serve this purpose? Explain.

Ethics and minors : Maria is a 32 year old, Latina woman. Her child, Rosalinda, age 6, was referred to counseling after having been exposed to domestic violence (Maria reports having been the victim) in the home.

Explaining pretty good privacy and s-mime : It is essential to encrypt it, by using solutions like PGP (Pretty Good Privacy), S/MIME (Secure Multi-Purpose Internet Message Exchange), and steganography. Research these different mechanisms.

Cash convesion cycle for diciolla company : The DiCiolla Co has sales of $12 million, CGS of $9 MM, and has $2.5 MM of inventory. Receivables are $750,000, payables are $666,667 and the company pays its payables in 30 days.

User Account

All Pages