The following costs result from the production and sale of 4,550 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $305 each. The company has a 40% income tax rate. $ 127,400 423,150 168,350 118,300 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 administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 9,500 19,000 79,000 19,000 69,000 149,000 Required: . Prepare a contribution margin income statement for the company. 2. Compute its contribution margin per unit and its contribution margin ratio. Required 1 Required 2 Prepare a contribution margin income statement for the company. $ 1,387,750 TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs: Plastic for casing 127,400 Wages of assembly workers 423,150 Drum stands 168,350 718,900 Total variable costs Contribution margin Fixed costs 668,850 Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff 9,500 19,000 79,000 19,000 COSIS Plastic for casing Wages of assembly workers Drum stands 127,400 423,150 168,350 718,900 668,850 Total variable costs Contribution margin Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 9,500 19,000 79,000 19,000 69.000 149.000 Total fixed costs 344,500 Net income 206,050 Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2017 Per Unit Sales Variable costs: Total variable costs Contribution margin