Exercise 18-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $117 and of each door is $267. The variable cost of a window is $71.00 and of a door is $183.50. Fixed costs are $372,125. (Enter your "per unit" values in two decimal places.) Selling Price per unit (1) Determine the selling price per composite unit. Quantity Windows Doors Total per composite unit Variable costs per unit Total per composite unit (2) Determine the variable costs per composite unit. Quantity Windows Doors Contribution margin per composite unit $ 0.00 0.00 Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: = Break Even Units Break even units 0 (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: = Break Even Units - Break even units 0 (4) Determine the number of units of each product that will be sold at the break-even point. Quantity Number of composite units to break even. Unit sales at break-even point Windows Doors Total The following costs result from the production and sale of 4,650 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $315 each. The company has a 30% income tax rate. $139,500 441,750 181,350 130,200 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 8,500 17,000 77,000 17,000 67,000 147,000 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? 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, 2019 Sales Variable costs Total variable costs Contribution margin Fixed costs Total variable costs Contribution margin Fixed costs Total fixed costs Required 1 Required 2 Required 3 Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2019 Per Unit Sales Variable costs: Total variable costs Contribution margin 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? 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 operating income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover fixed costs and contribute to operating income?