Problem 21-2A Contribution margin income statement and contribution margin ratio A1 The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $500 each. Variable costs Fixed costs Plastic for casing.. $17,000 Taxes on factory. $ 5,000 Wages of assembly workers.. Drum stands... 82,000 Factory maintenance...... 10,000 26,000 Factory machinery depreciation... 40,000 Sales commissions.......... 15,000 Lease of equipment for sales staff.. 10,000 Accounting staff salaries. 35,000 Administrative salaries..... 125,000 page 797 Required 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. Analysis Component 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income?