Problem 18-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,500 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $300 each. Variable costs Plastic for casing Wages of assembly workers Orum stands Sales commissions Fixed costs Taxes on factory Factory maintenance. Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries Required: $121,500 414,000 162,000 112,500 15,000 30,0 90,000 30, 80,000 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 Prepare contribution margin income statement for the year. 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: es Contribution margin Fixed costs Income Required 1 Required 2 Required 3 Compute contribution margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 Sales Variable costs: Total variable costs Contribution margin Per Unit < Required 1 Required 3 > 4 The following costs result from the production and sale of 4,500 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $300 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions $121,500 414,000 162,000 112,500 Fixed costs Taxes on factory 15,000 Factory maintenance 30,000 Factory machinery depreciation 90,000 Lease of equipment for sales staff 30,000 Accounting staff salaries 80,000 160,000 Administrative salaries 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. For each dollar of sales, how much is left to cover fixed costs and contribute to income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover foxed costs and contribute to income?