The following data are from the accounting records of NilesCastings for year 2.
| | | |
| Units produced and sold | | 88,000 | |
| Total revenues and costs | | | |
| Sales revenue | $ | 340,000 | |
| Direct materials costs | | 70,000 | |
| Direct labor costs | | 36,000 | |
| Variable manufacturing overhead | | 17,000 | |
| Fixed manufacturing overhead | | 43,000 | |
| Variable marketing and administrative costs | | 16,500 | |
| Fixed marketing and administrative costs | | 37,000 | |
|
a. Prepare a gross margin income statement.
b. Prepare a contribution margin incomestatement.
