The following costs result from the production and sale of 4,100 drum sets manufactured by...
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Accounting
The following costs result from the production and sale of 4,100 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $260 each. The company has a 35% income tax rate.
| Variable production costs | ||
| Plastic for casing | $ | 77,900 |
| Wages of assembly workers | 344,400 | |
| Drum stands | 114,800 | |
| Variable selling costs | ||
| Sales commissions | 69,700 | |
| Fixed manufacturing costs | ||
| Taxes on factory | 11,000 | |
| Factory maintenance | 22,000 | |
| Factory machinery depreciation | 82,000 | |
| Fixed selling and administrative costs | ||
| Lease of equipment for sales staff | 22,000 | |
| Accounting staff salaries | 72,000 | |
| Administrative management salaries | 152,000 | |
Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.)
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