Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,150 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $265 each. The company has a 40% income tax rate. $ 83,000 352,750 120,350 74,780 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 11,500 23,000 83,000 23,000 73,000 153,000 Required: 1. Prepare a contribution margin income statement for the company, 2. Compute its contribution margin per unit and its contribution margin ratio. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for the company. TIGHT DRUMS COMPANY Contribution Marain Income Statement ... a Next s of $245,000. Search TeLUUN Saved 18 Prepare a contribution margin income statement for the company. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs: Plastic for casing Wages of assembly workers Drum stands Sales commissions 83,000 352,750 120,350 74,700 Total variable costs 630,800 11,500 23,000 Contribution margin Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative management salaries 83,000 23,000 73,000 153,000 Total fixed costs 366,500 Pretax income Income tax Net income Requires Required 2 >