The following costs result from the production and sale of 4,650 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $315 each. The company has a 30% income tax rate. Variable production costs Plastic for casing $ 139,500 Wages of assembly workers 441,750 Drum stands 181,350 Variable selling costs Sales commissions 130,200 Fixed manufacturing costs Taxes on factory 8,500 Factory maintenance 17,000 Factory machinery depreciation 77,000 Fixed selling and administrative costs Lease of equipment for sales staff 17,000 Accounting staff salaries 67,000 Administrative management salaries 147,000 Required:

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