Solution-Prepare contribution margin income statement

Prepare contribution margin income statement

Reference no: EM13545571

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.

Reference no: EM13545571

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Prepare contribution margin income statement

Reference no: EM13545571

Reference no: EM13545571

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