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

Direct materials	$	37	per unit
Fixed manufacturing overhead costs	$	210,000
Sales price	$	205	per unit
Variable manufacturing overhead	$	18	per unit
Direct labor	$	27	per unit
Fixed marketing and administrative costs	$	190,000
Units produced and sold	$	5,500
Variable marketing and administrative costs	$	8	per unit

Required:

a. Prepare a gross margin income statement.

Gross Margin Income Statement

b. Prepare a contribution margin income statement.

Contribution Margin Income Statement