Problem 5-1A Contribution margin income statement and The following costs result from the production and sale of 4,750 ended December 31, 2017. The drum sets sell for $325 each. The company has a 40% income tax rat drum sets manufactured by Tight Drums Company for the year Variable production costs Plastic for casing Wages of assembly vorkers Drum stands $152,000 460,750 194,750 Variable selling costs Sales commissions 142,500 Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation 7,500 5,000 75,000 Pixed sel1ing and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 15,000 65,000 145,000 Required: 1. Prepare a contribution margin income statement for the company 2. Compute its contribution margin per unit and its contribution margin ratio. Prev1 of 1 Next>