The following costs result from the production and sale of 4,650 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $315 each. Variable costs Plastic for casing Wages of assembly workers. Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries $ 139,500 441,750 181,350 130, 200 Required: 1. Prepare a contribution margin income statement for the year. 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? Required 1 Required 2 8,500 17,000 77,000 17,000 67,000 147,000 Complete this question by entering your answers in the tabs below. Required 3 Compute contribution margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31

The following costs result from the production and sale of 4,650 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $315 each. Variable costs Plastic for casing Wages of assembly workers. Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries $ 139,500 441,750 181,350 130, 200 Required: 1. Prepare a contribution margin income statement for the year. 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? Required 1 Required 2 8,500 17,000 77,000 17,000 67,000 147,000 Complete this question by entering your answers in the tabs below. Required 3 Compute contribution margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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