Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following costs result from the production and

The following costs result from the production and sale of 4,300 drum sets manufactured by...

90.2K

Verified Solution

Question

Accounting

The following costs result from the production and sale of 4,300 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $280 each. The company has a 35% income tax rate.

Variable production costs
Plastic for casing $ 98,900
Wages of assembly workers 378,400
Drum stands 137,600
Variable selling costs
Sales commissions 90,300
Fixed manufacturing costs
Taxes on factory 13,000
Factory maintenance 26,000
Factory machinery depreciation 86,000
Fixed selling and administrative costs
Lease of equipment for sales staff 26,000
Accounting staff salaries 76,000
Administrative management salaries 156,000

Required:

1. Prepare a contribution margin income statement for the company. 2. Compute its contribution margin per unit and its contribution margin ratio.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

The following information is available for the month ofApril. The company uses the perpetual inventory method....

Biology
1.2K views

Mitosis is a type of cell division that produces cells that are used for growth...

Basic Math
1.2K views

"A polynomial f(r) over an field is irreducible if and only f(x + 1) is...

Statistics
1.2K views

1 Be sure to fully justify your responses when appropriate Don t forget units and...

Accounting
1.2K views

Calculating Departmental Overhead Rates Using Post Allocation Costs Chekov Company has two support departments, Human...

Accounting
1.2K views

roblem Three (10 points): Weez Ltd is a GST registered retailer of widgets with monthly...

Accounting
1.2K views

Exercise 12-9 Here are comparative balance sheets for Wildhorse Co.. 2018 Wildhorse Co. Comparative Balance...

Accounting
1.2K views

Please solve all these questionsIn General Relativity ( Minkowski line element) ...

Accounting
1.2K views

4 Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in...

Accounting
1.2K views

Mastery Problem: Differential Analysis and Product Pricing WoolCorp WoolCorp buys sheeps wool from farmers. The...

Accounting
1.2K views

You want to create a portfolio equally as risky as the market, and you have...

Finance
1.2K views

Question 7 1 pts If D1 = $1.25, g (which is constant) = 5.5%, and...