Problem 21-1B Contribution margin income statement and contribution margin ratio A1

The following costs result from the production and sale of 12,000 CD sets manufactured by Gilmore Company for the year ended December 31, 2019. The CD sets sell for $18 each. The company has a 25% income tax rate.

Required

1. Prepare a contribution margin income statement for the year.

   Check (1) Net income, $6,135

2. Compute its contribution margin per unit and its contribution margin ratio.

I need assistance with part 3 the analysis component

Analysis Component

3. Interpret the contribution margin and contribution margin ratio from part 2.

The variable cost is $175,500 and the fixed cost is $167,320

This is the entire problem within the textbook and assignment. I am not sure what else you are needing to assist.....

Problem 21-1B Contribution margin income statement and contribution margin ratio A1

The following costs result from the production and sale of 12,000 CD sets manufactured by Gilmore Company for the year ended December 31, 2019. The CD sets sell for $18 each. The company has a 25% income tax rate.

Required

1. Prepare a contribution margin income statement for the year.

   Check (1) Net income, $6,135

2. Compute its contribution margin per unit and its contribution margin ratio.

Analysis Component

3. Interpret the contribution margin and contribution margin ratio from part 2.