need help with 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 $17,000 Variable selling costs Sales commissions. .. . Fixed manufacturing costs 5,000 Fixed selling & administrative costs Lease of equipment for sales staff. ....10,000 Administrative management salaries. 125,000