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The following costs result from the production and sale of 4,850 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $335 each. 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? Complete this question by entering your answers in the tabs below. Prepare a contribution margin income statement for the year. Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 \begin{tabular}{|l|r|r|r|} \hline Sales & & $1,624,750 \\ \hline Variable costs: & & \\ \hline Plastic for casing & 164,900 & \\ \hline Wages of assembly workers & 480,150 & \\ \hline Drum stands & 208,550 & \\ \hline Sales commissions & 155,200 & \\ \hline & & & 1,008,800 \\ \hline Contribution margin & & & \\ \hline Fixed costs & 623,950 \\ \hline Taxes on factory & 13,000 & \\ \hline Factory maintenance & 73,000 & \\ \hline Factory machinery depreciation & 13,000 & \\ \hline Lease of equipment for sales staff & 63,000 & \\ \hline \hline Accounting staff salaries & 143,000 & \\ \hline \hline Administrative salaries & 10,415 & \\ \hline \hline \end{tabular} Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ra:so. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income? Complete this question by entering your answers in the tabs below. Compute contribution margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) Complete this question by entering your answers in the tabs below. For each dollar of sales, how much is left to cover fixed costs and contribute to income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover foxed costs and contribute to income? Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. Exercise 21-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $166,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

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