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The following costs result from the production and sale of

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Reference no: EM13589772

The following costs result from the production and sale of 4,500 drum sets manufactured by Tom Thompson Company for the year ended December 31, 2013. The drum sets sell for $300 each. The company has a 35% income tax rate.

  

Variable production costs

Plastic for casing $ 121,500
Wages of assembly workers
414,000
Drum stands
162,000
Variable selling costs

Sales commissions
112,500
Fixed manufacturing costs

Taxes on factory
15,000
Factory maintenance
30,000
Factory machinery depreciation
90,000
Fixed selling and administrative costs

Lease of equipment for sales staff
30,000
Accounting staff salaries
80,000
Administrative management salaries
160,000

Required:
1.

Prepare a contribution margin income statement for the company.


2.1 Compute its contribution margin per unit.

Reference no: EM13589772

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