Business, 03.11.2020 16:40 ninmagic

The following costs result from the production and sale of 4,700 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $320 each. The company has a 35% income tax rate. Variable production costs Plastic for casing $ 145,700 Wages of assembly workers 451,200 Drum stands 188,000 Variable selling costs Sales commissions 136,300 Fixed manufacturing costs Taxes on factory 8,000 Factory maintenance 16,000 Factory machinery depreciation 76,000 Fixed selling and administrative costs Lease of equipment for sales staff 16,000 Accounting staff salaries 66,000 Administrative management salaries 146,000 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

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The following costs result from the production and sale of 4,700 drum sets manufactured by Tight Dru...

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