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, 2017. The drum sets sell for $275 each. The company has a 30% income tax rate. Variable production costs Plastic for casing $ 93,500 369,750 131,750 Wages of assembly workers Drum stands Variable selling costs Sales commissions 85,000 Fixed manufacturing costs Taxes on factory 12,500 25,000 85,000 Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 25,000 75,000 155,000 Required: 1. Prepare a contribution margin income statement for the company. 2. Compute its contribution margin per unit and its contribution margin ratio. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales 3,437,500 Variable costs Total variable costs Contribution margin Fixed costs Total fixed costs Required 1 Required 2 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