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Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It do Problem 18-1A Contribution margin income statement and contribution margin ratio LO A The following costs result from the production and sale of 4,700 drum sets manufactured by Tight Drums Company December 31, 2019. The drum sets sell for $320 each. The company has a 35% income tax rate. $145,700 451,200 188,000 136,300 Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 8,000 16,000 76,000 16,000 66,000 146,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? Wstatement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales Variable costs: $1,504,000 Plastic for casing 145,700 Wages of assembly workers Drum stands + 451,200 Sales commissions 188,000 136,300 Total variable costs Contribution margin 921,200 Fixed costs 582,800 Taxes on factory Factory maintenance 8,000 Factory machinery depreciation 16,000 Lease of equipment for sales staff 76,000 Accounting staff salaries 16,000 Administrative management salaries 66,000 146,000 Total variable costs Contribution margin 921,200 Fixed costs 582,800 Taxes on factory Factory maintenance 8,000 Factory machinery depreciation 16,000 76,000 Lease of equipment for sales staff + Accounting staff salaris 16,000 Administrative management salaries 66,000 146,000 Total fixed costs Pretax income 328,000 Income tax 254,800 Net income 89,180 $ 165,620 percentage.) margin per unit and its contribution margin ratio. (Rour TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2019 Sales Per Unit Variable costs: $ 320 Plastic for casing Wages of assembly workers 31 Drum stands 96 >> Sales commissions 40 29 Total variable costs Contribution margin 196 Contribution Margin Ratio $ 124 Sales Variable costs $ 320 100% Contribution margin 196 62% $ 124 38% Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? (Round your answer to decimal places.) $ 0.38 X For each dollar of sales, how much is left to cover fixed costs and contribute to operating income?
