Problem 21-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,250 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $275 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 93,500 369,750 131,750 85,000 Taxes on factory 12,500 Factory maintenance 25,000 85,000 Lease of equipment for sales staff 25,000 75,000 155,000 Factory machinery depreciation Accounting staff salaries 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?