The following data are from the accounting records of Niles Castings for year 2:
Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000
Total revenues and costs
Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $264,000
Direct materials costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,000
Direct labor costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,000
Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . . 17,000
Fixed manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . 44,000
Variable marketing and administrative costs . . . . . . . . . . . 13,600
Fixed marketing and administrative costs . . . . . . . . . . . . . 32,000
Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.