The following costs result from the production and sale of 1,000 drum sets manufactured by Tight...

 

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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 Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 17,000 82,000 26,000 15,000 Taxes on factory 5,000 Factory maintenance 10,000 Factory machinery depreciation 40,000 Lease of equipment for sales staff 10,000 Accounting staff salaries 35,000 125,000 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales 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 Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 17,000 82,000 26,000 15,000 Taxes on factory 5,000 Factory maintenance 10,000 Factory machinery depreciation 40,000 Lease of equipment for sales staff 10,000 Accounting staff salaries 35,000 125,000 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales