The following costs result from the production and sale of 4,100 drum sets manufactured by...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The following costs result from the production and sale of 4,100 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $260 each. The company has a 35% income tax rate.
Variable production costs
Plastic for casing
$
77,900
Wages of assembly workers
344,400
Drum stands
114,800
Variable selling costs
Sales commissions
69,700
Fixed manufacturing costs
Taxes on factory
11,000
Factory maintenance
22,000
Factory machinery depreciation
82,000
Fixed selling and administrative costs
Lease of equipment for sales staff
22,000
Accounting staff salaries
72,000
Administrative management salaries
152,000
Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.)
TIGHT DRUMS COMPANY
Contribution Margin Income Statement (partial)
For Year Ended December 31, 2015
Per Unit
Sales
?
Variable costs:
Drum stands
?
Plastic for casing
?
Sales commissions
?
Wages of assembly workers
?
Total variable costs
Contribution margin
?
?
?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!