Ch 18 Homework 1 Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 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. 166 points Variable production costs Plastic for casing Wages of assenbly workers Drun stands $ 17,000 82,000 26,000 eBook Variable selling costs Sales comnissions 15,000 Fixed sanufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and adeinistrative costs Lease of equipment for sales staff Print s,000 10,000 40,000 References 10,0e0 Accounting staff salaries Adsinistrative managenent salaries 35, eee 125,e00 Required: 1. Prepare a contribution margin income statement for the company 2. Compute Its contribution margin per unit and its contribution margin ratio. Ch 18 Homeworki 1 Required 2 Required 1 Prepare a contribution margin income statement for the company. TIGHT DRUMS COMPANY 166 Contribution Margin Income Statement points For Year Ended December 31, 2017 Sales Variable costs eBook Print References Total variable costs Contribution margin Fixed costs Total foxed costs Ch 18 Homework i 1 Required 2 Required 1 Compute its contribution margin per unit and its contribution margin ratio. TIGHT DRUMS COMPANY 1.66 Contribution Margin Income Statement (partial) points For Year Ended December 31, 2017 Per Unit Sales eBook Variable costs: Print References Total variable costs Contribution margin