Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017.

image text in transcribed
image text in transcribed
The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets se for $295 each. The company has a 30% income tax rate. Variable production costs Plastic for casing Drum stands Sales commissions $115,700 484,950 155,758 0209.3Wages of assembly workers Variable selling costs 186,880 Fixed nanufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation 14,580 29,808 89,800 Fixed selling and administrative cost:s Lease of equipment for sales staff Accounting staff salaries 29,000 79,000 159,009 Administrative management salaries Required: 1. Prepare a contribution margin income statement for the company 2 Compute its contribution margin per unit and its contribution margin ratio Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for the company Contribution Margin Income Statement 4 The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017, The drum sets sell for S295 each. The company has a 30% income tax rate. Variable production costs Plastic for casing Drum stands Sales commissions $115,700 404,950 , 155,758 02093ages of assembly workers Variable selling costs 106,880 Fixed nanufacturing costs Taxes on factory Factory maintenance Factory nachinery depreciation 24,580 , 29,800 89,800 Fixed selling and adeinistrative costs Lease of equipment for sales staff Accounting staff salaries Adninistrative management salaries 29,800 79,800 159,880 Required 1. Prepare a contribution margin income statement for the company 2 Compute its contribution margin per unit and its contribution margin ratio Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole Margin lnocome Statenent (partial) For Year Ended December 31, 2017 Per Unit Total varable cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions