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

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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. The drum sets sell for $260 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 $ 77,900 344,400 114,800 69,700 11,000 22,000 82,000 22,000 72,000 152,000 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? 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. The drum sets sell for $260 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 $ 77,900 344,400 114,800 69,700 11,000 22,000 82,000 22,000 72,000 152,000 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?

Answer rating: 100% (QA)

1 Contribution Margin Income Statement for the Year Sales 1066000 Variable Costs Plastic for casing ... View the full answer