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

Units produced and sold		89,000
Total revenues and costs
Sales revenue	$	280,000
Direct materials costs		65,000
Direct labor costs		40,000
Variable manufacturing overhead		15,000
Fixed manufacturing overhead		42,000
Variable marketing and administrative costs		13,500
Fixed marketing and administrative costs		30,000

Required:

a. Prepare a gross margin income statement.

b. Prepare a contribution margin income statement.