Alpine Coffee Roasters reports the following information for November.         Units produced and sold   23,800 Per unit revenue and costs:     Sales revenue $ 9.80 Direct materials costs   0.50 Direct labor costs   0.35 Variable manufacturing overhead   0.25 Fixed manufacturing overhead based on a volume of 23,800 units   2.20 Variable marketing and administrative costs   0.95 Fixed marketing and administrative costs based on a volume of 23,800 units   2.95   Required: Prepare a gross margin income statement. Prepare a contribution margin income statement.

Question

Alpine Coffee Roasters reports the following information for November.

 

 

 

 

Units produced and sold

 

23,800

Per unit revenue and costs:

 

 

Sales revenue

$

9.80

Direct materials costs

 

0.50

Direct labor costs

 

0.35

Variable manufacturing overhead

 

0.25

Fixed manufacturing overhead based on a volume of 23,800 units

 

2.20

Variable marketing and administrative costs

 

0.95

Fixed marketing and administrative costs based on a volume of 23,800 units

 

2.95

 


Required:

  1. Prepare a gross margin income statement.
  2. Prepare a contribution margin income statement.

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