The following costs result from the production and sale of 4,350 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $285 each. The company has a 40% income tax rate.

Variable production costs
Plastic for casing	$	104,400
Wages of assembly workers		387,150
Drum stands		143,550
Variable selling costs
Sales commissions		95,700
Fixed manufacturing costs
Taxes on factory		13,500
Factory maintenance		27,000
Factory machinery depreciation		87,000
Fixed selling and administrative costs
Lease of equipment for sales staff		27,000
Accounting staff salaries		77,000
Administrative management salaries		157,000

Required:

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

Prepare a contribution margin income statement for the company.

	TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs: Total variable costs Contribution margin Fixed costs Total fixed costs

Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.)

	TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2017 Per Unit Sales Variable costs: Total variable costs Contribution margin