Answer Happy

The following costs result from the production and sale of 4,500 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $300 each. The company has a 35% income tax rate. Variable production costa Plastic for casing Wagen 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 $121,500 414,000 162,000 112,500 15,000 30,000 90,000 30,000 80,000 160,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income?
Sales Variable costs: Plastic for casing Wages of assembly workers Drum stands Sales commissions TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Total variable costs Contribution margin Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative management salaries Total fixed costs Net loss 121,500 414,000 162,000 112,500 15,000 30,000 90,000 30,000 80,000 160,000 $2,700,000 810,000 1,890,000 405,000 $1,485,000
Compute its contribution margin per unit and its contribution margin ratio. (Rou percentage.) TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2019 Sales Variable costs: Plastic for casing Wages of assembly workers' Drum stands Sales commissions Total variable costs Contribution margin Sales Variable costs Contribution margin ✓ Contribution Margin Ratio $ en 64 27 7884 92 36 25 600 180 420 $ $ Per Unit 600 180 420 100% 30% X 70%
Required 1 Required 2 * For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? (Round your decimal places.) Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? < Required 2 $ 0.70