Larcker Manufacturing's cost accountant has provided you with the following information for January operations.

Direct materials	$	21	per unit
Fixed manufacturing overhead costs	$	135,000
Sales price	$	79	per unit
Variable manufacturing overhead	$	12	per unit
Direct labor	$	24	per unit
Fixed marketing and administrative costs	$	117,000
Units produced and sold		30,000
Variable marketing and administrative costs	$	5	per unit

Required:

a. Prepare a gross margin income statement.

b. Prepare a contribution margin income statement.

Complete this question by entering your answers in the tabs below.

• Required A

Prepare a gross margin income statement.

Gross Margin Income Statement
Sales revenue	$2,370,000
Fixed manufacturing overhead costs	135,000
Variable manufacturing costs
Gross margin
Fixed marketing and administrative costs	117,000
Variable marketing and administrative costs	150,000
Operating profit

Complete this question by entering your answers in the tabs below.

• Required B

Prepare a contribution margin income statement.

Contribution Margin Income Statement
Sales revenue	$2,370,000
Variable manufacturing costs	1,710,000
Variable marketing and administrative costs	150,000
Contribution margin
Fixed manufacturing overhead costs
Fixed marketing and administrative costs	135,000
Operating profit	$117,000