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Problem 18-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 ...

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Accounting

Problem 18-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1
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.
\table[[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.
Required 1
Required 3
Prepare a contribution margin income statement for the year.
TIGHT DRUMS COMPANY
Contribution Margin Income Statement
For Year Ended December 31
\table[[Sales,,$1,504,000
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