Return to Problem 18-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,350 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $285 each. $ 104,400 387,150 143,550 95,700 Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries 13,500 27,000 87,000 27,000 77,000 157,000 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? X Answer is not complete. Complete this question by entering your answers in the tabs below. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales $1,239,750 Variable costs: Plastic for casing $ 104,400 Wages of assembly workers 387,150 Drum stands 143,550 95,700 Sales commissions 730,800 Contribution margin 508,950 Fixed costs Taxes on factory 13,500 27,000 87,000 Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries OOOOOO 27,000 77,000 157,000 Administrative salaries 388,500 Income $ 48,180 Compute contribution margin per unit and contribution margin ratio. (Round Contribution mars percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 Per Unit Sales $ 285 Variable costs: Plastic for casing 24 Wages of assembly workers 89 Drum stands 33 Sales commissions 22 Total variable costs 168 Contribution margin $ 117 Contribution Margin Ratio Sales $ 285 100% Variable costs 168 Contribution margin $ 117 41%