Variable costs 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 July 1, prepare the following income statements for the month of July:

(a) Contribution margin income statement

(b) Gross margin income statement