Contribution margin income statement for the company

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Reference no: EM131266840

The following cost result from the production and sale and $1000 drum sets manufactured by Tight Drums company for the year ended december 31, 2015. the Drum sets sell for$500 each. the company has a 25% income tax rate.

Variable production costs

plastic for casing $17000

wages of assembly workers $82000

drum stands $26000

variable selling cost

sales commisitions $15.000

fixed manufacturing cost

taxes on factory $5000

factory maintenance $10.000

factory machinery depreciation $40.000

fixed selling and administrative cost

lease of equipment for sales staff $10.000

accountin staff salaries $35000

administrative managment salaries $125.000

required::

1. prepare a contribution margin income statement for the company.

2. compute its contribution margin per unit and its contribution margin ratio.

Reference no: EM131266840

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