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

Units produced and sold		84,000
Total revenues and costs
Sales revenue	$	280,000
Direct materials costs		65,000
Direct labor costs		32,000
Variable manufacturing overhead		16,000
Fixed manufacturing overhead		48,000
Variable marketing and administrative costs		14,500
Fixed marketing and administrative costs		39,000

a. Prepare a gross margin income statement

sales revenue variable manufacturing costs fixed manufacturing costs gross margin fixed marketing and administrative costs variable marketing and administrative costs operating profile

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 profile