Problem 21-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 5,000 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $350 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions $ 185,000 510,000 230,000 175,000 Fixed costs Taxes on factory 5,000 Factory maintenance 10,000 Factory machinery depreciation 70,000 Lease of equipment for sales staff 10,000 Accounting staff salaries 60,000 140,000 Administrative salaries 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?