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

Units produced and sold		82,000
Total revenues and costs
Sales revenue	$	280,000
Direct materials costs		70,000
Direct labor costs		37,000
Variable manufacturing overhead		19,000
Fixed manufacturing overhead		44,000
Variable marketing and administrative costs		17,000
Fixed marketing and administrative costs		33,000

Required:

a. Prepare a gross margin income statement.

Sales revenue:

Variable manufacturing costs:

Fixed manufacturing overhead costs:

Gross margin:

Fixed marketing and administrative costs:

Variable marketing and administrative costs:

Operating profit:

b. Prepare a contribution margin income statement.

Sales revenue:

Variable manufacturing costs:

Variable marketing and administrative costs:

Contribution margin:

Fixed marketing and administrative costs:

Fixed manufacturing costs:

Operating profit: