The following data are from the accounting records of Niles Castings for year 2:

Units produced and sold		81,000
Total revenues and costs
Sales revenue	$	300,000
Direct materials costs		62,000
Direct labor costs		31,000
Variable manufacturing overhead		17,000
Fixed manufacturing overhead		47,000
Variable marketing and administrative costs		11,500
Fixed marketing and administrative costs		32,000

1. Prepare a gross margin income statement.

2. Prepare a contribution margin income statement.