Tosca Beverages reports the following information for July:
Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,800
Per unit revenue and costs:
Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.20
Direct material costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.20
Direct labor costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.16
Variable manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . 0.06
Fixed manufacturing overhead based
on a volume of 18,800 units . . . . . . . . . . . . . . . . . . . . . . . . . . 0.92
Variable marketing and administrative costs . . . . . . . . . . . . . 0.48
Fixed marketing and administrative costs
based on a volume of 18,800 units . . . . . . . . . . . . . . . . . . . 1.00
Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.