Refer to Exercise 2-34.

Required

Prepare:

a. A gross margin income statement.

b. A contribution margin income statement.

Data from in Exercise 2.34

Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:

Transcribed Image Text:

Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor ... Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs $35 per unit $225,000 $195 per unit $20 per unit $40 per unit $195,000 5,000 $8 per unit