Problem $18-2$A $($Algo$)$ Contribution margin income statement and contribution margin ratio LO A$1$

The following costs result from the production and sale of $4,900$ drum sets manufactured by Tight Drums Company for the year ended December $31.$ The drum sets sell for $$340$ each.

Variable costs

Plastic for casing $ $171,500$

Wages of assembly workers $490,000$

Drum stands $215,600$

Sales commissions $161,700$

Fixed costs

Taxes on factory $6,000$

Factory maintenance $12,000$

Factory machinery depreciation $72,000$

Lease of equipment for sales staff $12,000$

Accounting staff salaries $62,000$

Administrative salaries $142,000$

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?