how to do the following last three 1. Prepare a contribution margin income statement for the company.

2. Compute its contribution margin per unit and its contribution margin ratio. 3. Interpret the contribution margin and contribution margin ratio from part 2.

CVP Analysis-Homework Handout PROBLEM 21-1A (page 927 in Fundamental Accounting Principles, 23 ed.) The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $500 each. The company has a 25% income tax rate Variable production costs Variable selling costs Fixed manufacturing costs 5,000 40,000 Lease of equipment for sales staff.....10,000 125,000 Fixed selling & administrative costs Administrative management salaries