18-2A (Algo) Contribution margin Income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 5,000 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $350 each. Variable costs Plastic for casing Wages of assembly workers Drum stands $ 185,000 510,000 230,000 ook Sales commissions 175,000 Fixed costs rint Taxes on factory 5,000 Factory maintenance 10,000 rences Factory machinery depreciation 70,000 Lease of equipment for sales staff 10,000 Accounting staff salaries. 60,000 Administrative salaries) 140,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income? Complete this question by entering your answers in the tabs below, Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to 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 Sales Variable costs: Plastic for casing 185,000 Wages of assembly workers 510,000 Drum stands 230,000 Sales commissions 175,000 1,100,000 Contribution margin NGHT DRUMS COMPANY Contribution Marain Income Statement For Year Ended December 31 Sales Variable costs: Plastic for casing $ 185,000 Wages of assembly workers 510,000 Drum stands 230,000 Book Sales commissions 175,000 1,100,000 Print erences Contribution margin Fixed costs Taxes on factory 5,000 Factory maintenance 10,000 Factory machinery depreciation 70,000 Lease of equipment for sales staff 10,000 Accounting staff salaries 60,000 Administrative salaries 140,000 295,000 Income Required 2 Compute contribution margin per unit and contribution margin ratio. (Round Contribution marg percentage.) Sales Variable costs: TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 Total variable costs Contribution margin Per Unit Homework Saved Accounting staff salaries Administrative salaries Required: 60,000 140,000 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to 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 income? (Round your answer to 2 places.) For each dollar of sales, how much is left to cover fixed costs and contribute to income