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 Factory maintenance 12,500 25,000 Factory machinery depreciation 85,000 Lease of equipment for sales staff 25,000 75,000 155,000 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? Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales $1,168,750 Variable costs: Plastic for casing $ 93,500 Wages of assembly workers 369,750 Drum stands 131,750 Sales commissions 85,000 680,000 Contribution margin Fixed costs 488,750 Taxes on factory 12,500 Factory maintenance 25,000 Factory machinery depreciation 85,000 Lease of equipment for sales staff 25,000 Accounting staff salaries 75,000 Accounting staff salaries 155,000 Income < Required 1 377,500 $ 111,250 Required 2 > Required 1 Required 2 Required 3 Compute contribution margin per unit and contribution margin ratio. (Round Contributio percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 Sales Variable costs: Plastic for casing Wages of assembly workers Drum stands Sales commissions 22 87 31 20 Per Unit Total variable costs 160 Contribution margin $ 115 Contribution Margin Ratio Sales Variable costs Contribution margin 100% 160 160% $ 115 115% Answer is not complete. 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 income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover fixed costs and contribute to income? $ 9.00 X