The cost accountant for the Larsen Manufacturing Co. has provided you with the following information for the month of July:

Variable.Cost per unit Total Fixed Costs

Direct Labor $27.50

Direct Materials 84.75

Manufacturing Overhead 14.25 $120,000

Marketing Costs 5.30 50,000

Administrative Costs 2.90 75,000

Selling Price 210.00

Required: Assuming the company produced and sold 5,000 units, and there were no units in inventory on July1, prepare the following income statements for the month of July:

(a) Contribution margin income statement

(b) Gross margin income statement