Problem 18-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,400 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $290 each. $ 110,000 395,000 149,600 101,200 Variable costs Plastic for casing Wages of assembly workers Drum stands Sales Comissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries 14.000 28,000 88,000 28,000 78,000 158,000 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 Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Mirgin Income Stament For Year Ended December 31 Sales 1.276,000 Variable costs Plastic for casing $ 110,000 Wages of assembly workers Drum stands 396,000 149.000 101,200 OOOO Sales commissions 756.800 14.000 28,000 Contribution margin Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries 88.000 28,000 78,000 OOO 158.000 394.000 Income Required 1 equired 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 Suitement partial Far Year Ended December 31 Per Unit 290 Sales Variable costs Plastic for casing Wages of assembly workers Drum stands 0 Sales comisions Total variable costs Contribution margin 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? Answer is not complete. 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?