EX 2-55

Alpine Coffee Roasters reports the following information for November.

Units produced and sold		23,500
Per unit revenue and costs:
Sales revenue	$	9.70
Direct materials costs		0.45
Direct labor costs		0.30
Variable manufacturing overhead		0.20
Fixed manufacturing overhead based on a volume of 23,500 units		2.40
Variable marketing and administrative costs		1.20
Fixed marketing and administrative costs based on a volume of 23,500 units		2.85

Required:

a. Prepare a gross margin income statement.

b. Prepare a contribution margin income statement.