The following costs result from the production and sale of 4,300 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $280 each. The company has a 35% income tax rate.

Variable production costs
Plastic for casing	$	98,900
Wages of assembly workers		378,400
Drum stands		137,600
Variable selling costs
Sales commissions		90,300
Fixed manufacturing costs
Taxes on factory		13,000
Factory maintenance		26,000
Factory machinery depreciation		86,000
Fixed selling and administrative costs
Lease of equipment for sales staff		26,000
Accounting staff salaries		76,000
Administrative management salaries		156,000

Required:

1. Prepare a contribution margin income statement for the company. 2. Compute its contribution margin per unit and its contribution margin ratio.