Problem 18-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,700 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $320 each. 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 Required: $ 145,700 451,200 188,000 136,300 8,000 16,000 76,000 16,000 66,000 146,000 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 Prepare a contribution margin Income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs: $ 1,504,000 Plastic for casing $ 145,700 Wages of assembly workers 451,200 Drum stands 188,000 Sales commissions 136,300 921,200 Contribution margin Fixed costs Taxes on factory 8,000 Factory maintenance 16,000 Factory machinery depreciation 76,000 Lease of equipment for sales staff 16,000 Accounting staff salaries 66,000 Administrative salaries 146,000 328,000 Income Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute contribution margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) Sales Variable costs: TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 Total variable costs Contribution margin Per Unit < Required 1 Required 3 > Wages of assembly workers 451,200 Drum stands 188,000 Sales commissions 136,300 Fixed costs Taxes on factory 8,000 Factory maintenance 16,000 Factory machinery depreciation 76,000 Lease of equipment for sales staff 16,000 Accounting staff salaries 66,000 Administrative salaries 146,000 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? < Required 2 Required 3 >