The following costs result from the production and sale of 4,300 drum sets manufactured by Tight Drums Co! December 31, 2017. The drum sets sell for $280 each. The company has a 35% income tax rate. $ 98,900 378,400 137,600 90,300 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 13,000 26,000 86,000 26,000 76,000 156,000 $ 1,204,000 For Year Ended December 31, 2017 Sales Variable costs Plastic for casing 98,900 Wages of assembly workers 378,400 Drum stands 137,600 Sales commissions 90,300 705,200 498.800 Total variable costs 3 Contribution margin Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales Staff Accounting staff salaries Administrative management salaries 13,000 26.000 86.000 26.000 76.000 156.000 383000 Total fixed costs Pretax income