Problem 21-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,300 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $280 each Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 98,900 378,400 137,600 90,300 Taxes on factory 13,000 Factory maintenance 26,000 Factory machinery depreciation. 86,000 Lease of equipment for sales staff 26,000 Accounting staff salaries 76,000 156,000 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? Variable costs Plastic for casing Wages of assembly workers Drum stands $ 98,900 378,400 137,600 Sales commissions 90,300 Fixed costs Taxes on factory 13,000 Factory maintenance 26,000 Factory machinery depreciation 86,000 Lease of equipment for sales staff 26,000 Accounting staff salaries 76,000 Administrative salaries 156,000