Alpine Coffee Roasters reports the following information for November: Units produced

Alpine Coffee Roasters reports the following information for November:
Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Per unit revenue and costs:
Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6.40
Direct materials costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00
Direct labor costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.40
Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . 0.10
Fixed manufacturing overhead based on a volume
of 36,000 units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.25
Variable marketing and administrative costs . . . . . . . . . . . . . 0.30
Fixed marketing and administrative costs
based on a volume of 36,000 units . . . . . . . . . . . . . . . . . . . 0.50
Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

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