The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $500 each. The company has a 25% income tax rate. 17 000 82,000 26,000 15,000 Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales Commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 5.000 10,000 40,000 10.000 35,000 125.000 Required: 1. Prepare a contribution margin income statement for the company 2. Compute its contribution margin per unit and its contribution margin ratio Compute its contribution margin per unit and its contribution margin ratio, TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2017 Per Unit $ 500 Sales Vanable costs. Plastic for casing Wages of assembly workers Drum stands Sales commissions Total variable costs Contribution margin 4,760 360 ($ Contribution Margin Ratio 100% 500 4.760 360 Variable costs Contribution margin 28% $ 72%