Business, 17.03.2020 00:54 smilequi9653

The following costs result from the production and sale of 4,100 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $260 each. The company has a 35% income tax rate. Variable production costs Plastic for casing $ 77,900 Wages of assembly workers 344,400 Drum stands 114,800 Variable selling costs Sales commissions 69,700 Fixed manufacturing costs Taxes on factory 11,000 Factory maintenance 22,000 Factory machinery depreciation 82,000 Fixed selling and administrative costs Lease of equipment for sales staff 22,000 Accounting staff salaries 72,000 Administrative management salaries 152,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income?

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The following costs result from the production and sale of 4,100 drum sets manufactured by Tight Dru...