Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,150 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $265 each. The company has a 40% income tax rate Variable production costs Plastic for casing Wages of assembly workers Drum stands $ 83,000 352,750 120,350 Variable selling costs Sales commissions 74,700 Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation 11,500 23,000 83,000 Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries 23,000 73,000 153,000 Administrative management salaries Required: 1. Prepare a contribution margin income statement for the company 2. Compute its contribution margin per unit and its contribution margin ratio Complete this question by entering your answers in the tabs below Prepare a contribution margin income statement for the company TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs: Total variable costs Contribution margin Fixed costs Total fixed costs Required 1Required 2 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 Year Ended December 31, 2017 Per Unit Total variable costs Contribution margin Required 1 Required 2