Problem $21-2$A $($Algo$)$ Contribution margin income statement and contribution margin ratio LO A$1$

The following costs result from the production and sale of $4,700$ drum sets manufactured by Tight Drums Company for the year ended

December $31.$ The drum sets sell for $$320$ each.

Variable costs

Plastic for casing $ $145,700$

Wages of assembly workers $,451,200$

Drum stands $188,000$

Sales commissions $,136,300$

Fixed costs

Taxes on factory $,8,000$

Factory maintenance $,16,000$

Factory machinery depreciation $,76,000$

Lease of equipment for sales staff $16,000$

Accounting staff salaries $66,000$

Administrative salaries $,146,000$

Required:

Prepare a contribution margin income statement for the year.

Compute contribution margin per unit and contribution margin ratio.

For each dollar of sales, how much is left to cover fixed costs and contribute to income?

Complete this question by entering your answers in the tabs below.

Prepare a contribution margin income statement for the year.

TIGHT DRUMS COMPANY

Contribution Margin Income Statement

For Year Ended December $31$