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Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,900 drum sets

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Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,900 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $340 each. The company has a 35% income tax rate. 0121,500 490,000 215,600 161,700 Variable production costs Plastic for casing Wages of assembly workers Drum atands Variable selling costa Sales commissions Tixed manufacturing conta Taxes on factory Factory maintenance Factory machinery depreciation Tixed selling and administrative cont Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 6.000 12.000 72,000 12,000 62,000 142.000 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? 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 Requiredtz Required 3 Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Yoar Ended December 31, 2019 Per Unit Sales Variable costs: Total variable costs Contribution margin 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?

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