18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,100 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $260 each. The company has a 35% income tax rate. Variable production costs Plastic for casing Wages of assembly workers Drun stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries $ 77,900 344,400 114,800 69,700 11,000 22,000 82,000 22,000 72,000 152,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales Variable costs: Total variable costs Contribution margin Fixed costs Total fixed costs < Required 1 Required 2 > Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,100 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $260 each. The company has a 35% income tax rate. Variable production costs Plastic for casing Wages of assembly workers Drun stands Variable selling costs Sales commissions Fixed manufacturing costs Factory maintenance $ 77,900 344,400 114,800 69,700 Taxes on factory 11,000 22,000 Factory machinery depreciation 82,000 Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries 22,000 72,000 Administrative management salaries 152,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) Sales Variable costs: TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2019 Total variable costs Contribution margin Per Unit < Required 1 Required 3 > Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,100 drum sets manufactured by Tight Drums Company for the December 31, 2019. The drum sets sell for $260 each. The company has a 35% income tax rate. Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs $ 77,900 344,400 114,800 69,700 Taxes on factory 11,000 Factory maintenance 22,000 Factory machinery depreciation 82,000 Fixed selling and administrative costs Lease of equipment for sales staff 22,000 Accounting staff salaries Administrative management salaries 72,000 152,000 year Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? Required 2 Required 3 > ended