Alpine Coffee Roasters reports the following information for November:
Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Per unit revenue and costs:
Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6.40
Direct materials costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00
Direct labor costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.40
Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . 0.10
Fixed manufacturing overhead based on a volume
of 36,000 units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.25
Variable marketing and administrative costs . . . . . . . . . . . . . 0.30
Fixed marketing and administrative costs
based on a volume of 36,000 units . . . . . . . . . . . . . . . . . . . 0.50
Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.