The following costs result from the production and sale of 4,050 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $255 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 72,900 336,150 109,350 64,800 Taxes on factory 10,500 Factory maintenance 21,000 Factory machinery depreciation 81,000 Lease of equipment for sales staff 21,000 Accounting staff salaries 71,000 Administrative salaries 151,000 Required: Prepare ines 2. Compute contribution margin per unit and contribution margin ratio. 3. 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 2 Required 3 Compute contribution margin per unit and contribution margin ratio. Note: Round Contribution margin ratio to nearest whole percentage. Contribution margin per unit Contribution margin ratio % Required 1 Required 2 Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to income? Note: Round your answer to 2 decimal places. For each dollar of sales, how much is left to cover fixed costs and contribute to income?
The following costs result from the production and sale of 4,050 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $255 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 72,900 336,150 109,350 64,800 Taxes on factory 10,500 Factory maintenance 21,000 Factory machinery depreciation 81,000 Lease of equipment for sales staff 21,000 Accounting staff salaries 71,000 Administrative salaries 151,000 Required: Prepare ines 2. Compute contribution margin per unit and contribution margin ratio. 3. 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 2 Required 3 Compute contribution margin per unit and contribution margin ratio. Note: Round Contribution margin ratio to nearest whole percentage. Contribution margin per unit Contribution margin ratio % Required 1 Required 2 Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to income? Note: Round your answer to 2 decimal places. For each dollar of sales, how much is left to cover fixed costs and contribute to income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following costs result from the production and sale of 4,050 drum sets manufactured by Tight Drums Company for the year ended
December 31. The drum sets sell for $255 each.
Variable costs
Plastic for casing
Wages of assembly workers
Drum stands
Sales commissions
Fixed costs
$ 72,900
336,150
109,350
64,800
Taxes on factory
10,500
Factory maintenance
21,000
Factory machinery depreciation
81,000
Lease of equipment for sales staff
21,000
Accounting staff salaries
71,000
Administrative salaries
151,000
Required:
Prepare
ines
2. Compute contribution margin per unit and contribution margin ratio.
3. 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 2 Required 3
Compute contribution margin per unit and contribution margin ratio.
Note: Round Contribution margin ratio to nearest whole percentage.
Contribution margin per unit
Contribution margin ratio
%
Transcribed Image Text:Required 1
Required 2
Required 3
For each dollar of sales, how much is left to cover fixed costs and contribute to income?
Note: Round your answer to 2 decimal places.
For each dollar of sales, how much is left to cover fixed costs and contribute to income?
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