Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following costs result from the production and sale of 4,350 drum sets manufactured by Tight Drums Company for the year ended December 31. The

image text in transcribed
image text in transcribed
image text in transcribed
The following costs result from the production and sale of 4,350 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $285 each $ 104,400 387,150 143,550 95,700 301 Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costo Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staft Accounting staft salaries Administrative salaries 13,500 27,000 97,000 27,000 77,000 157,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Compute contribution margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT ORUMS COMPANY Contribution Margin Income Statement (partia) For Year Ended December 31 Per Unit Sales 285 Variable costs $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute contributich margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 Per Unit $ 285 Sales Variable costs: Plastic for casing Wages of assembly workers Drum stands Sales commissions 104,400 387,150 143,550 95,700 Total variable costs Contribution margin 730,800 168 Contribution Margin Ratio $ Sales 285 100% 730.800 Variable costs Contribution margin $ 168 41% (Required 1 Required 3 > $ 104,400 387,150 143,550 95,700 Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries 13,500 27,000 87,000 27,000 77,000 157,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to Income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover fixed costs and contribute to income?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principle And Practice

Authors: Satyabrata Tripathy

1st Edition

9332519382, 9789332519381

More Books

Students also viewed these Accounting questions

Question

What other personal characteristics play a role at work?

Answered: 1 week ago