Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following costs result from the production and sale of 4.600 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $310 each. The company has a 25% income tax rate Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries Sales Variable costs $133,400 432.400 174,800 124,200 9,000 18,000 78,000 Required: 1. Prepare a contribution margin income statement for the company. Total variable costs Contribution margin Fixed costs 18,000 68,000 148,000 TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015

The following costs result from the production and sale of 4.600 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $310 each. The company has a 25% income tax rate Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries Sales Variable costs $133,400 432.400 174,800 124,200 9,000 18,000 78,000 Required: 1. Prepare a contribution margin income statement for the company. Total variable costs Contribution margin Fixed costs 18,000 68,000 148,000 TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

2. Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) Sales Variable costs: TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2015 Total variable costs Contribution margin Per Unit
Transcribed Image Text:2. Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) Sales Variable costs: TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2015 Total variable costs Contribution margin Per Unit
The following costs result from the production and sale of 4,600 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $310 each. The company has a 25% income tax rate. Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries Sales Variable costs: Required: 1. Prepare a contribution margin income statement for the company. Total variable costs Contribution margin Fixed costs $ 133,400 432,400 174,800 124,200 9,000 18,000 78,000 Total fixed costs 18,000 68,000 148,000 TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015
Transcribed Image Text:The following costs result from the production and sale of 4,600 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $310 each. The company has a 25% income tax rate. Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrative management salaries Sales Variable costs: Required: 1. Prepare a contribution margin income statement for the company. Total variable costs Contribution margin Fixed costs $ 133,400 432,400 174,800 124,200 9,000 18,000 78,000 Total fixed costs 18,000 68,000 148,000 TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS