Problem 5-1A 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, 2017. The drum sets sell for $275 each. The company has a 30% income tax rate. points eBook $ 93,500 369,750 131,750 Print 85.000 References Variable production costs Plastic for Casing Wages of bly workers Drumande Variable selling COSES Sales commissions Fixed manufacturing cont Taxenon factory Factory maintenance Factory chinery depreciation Yixed selling and administrative coats Lease of equipment for sales start Accounting start salaries Administrative agerent salaries 12.500 25,000 85.000 25,000 75,000 155.000 Required: 1. Prepare a contribution margin income statement for the company 2. Compute its contribution margin per unit and its contribution margin ratio Ch 05 P5-1A 6 Saved TOTURUMSLUTPAT $ 1,168,750 13 points Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs: Plastic for casing 93,500 Wages of assembly workers 369,750 Drum stands 131,750 Sales commissions 85,000 ebook Total variable costs 680 000 References Contribution margin 48,750 Fixed costs Taxes on factory 12 500 Factory maintenance 25 000 Factory machinery depreciation B000 Lease of equipment for sales stat 000 Accounting start salaries 75 000 Administrative management salaries T 1 55.000 Total fixed costs 377.500 Prev 1 of 1 75,000 155,000 Accounting staff salaries Administrative management salaries Total fixed costs Pretax income Print 377,500 100 References Required 2 > contribution gun income Statement partial For Year Ended December 31, 2017 Per Unit 13 points Sales Variable costs: Plastic for casing Wages of assembly workers Drum stands Sales commissions eBook Print References Total variable costs Contribution margin