Problem 21-1A Contribution margin income statement and contribution margin ratio LO A1 100 points The following costs result from the production and sale of 4,800 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $330 each. The company has a 25% income tax rate. eBook $158.400 470,400 201,600 148,800 Print Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Pactory maintenance Pactory machinery depreciation Pixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 7.000 14,000 74,000 References 14,000 64,000 144,000 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? 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: Plastic for casing Wages of assembly workers Drum stands Sales commissions Total variable costs Contribution margin Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative management salaries Total fixed costs Pretax income Income tax Net income 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, 2019 Per Unit Sales Variable costs: Plastic for casing Wages of assembly workers Drum stands Sales commissions 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