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The following costs result from the production and sale of 4,300 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $280 each. The company has a 35% income tax rate.

Variable production costs
Plastic for casing	$	98,900
Wages of assembly workers		378,400
Drum stands		137,600
Variable selling costs
Sales commissions		90,300
Fixed manufacturing costs
Taxes on factory		13,000
Factory maintenance		26,000
Factory machinery depreciation		86,000
Fixed selling and administrative costs
Lease of equipment for sales staff		26,000
Accounting staff salaries		76,000
Administrative management salaries		156,000

Required:

Prepare a contribution margin income statement for the company.

Complete this question by entering your answers in the tabs below.

	TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales $1,204,000 Variable costs: Plastic for casing 98,900 Wages of assembly workers 378,400 Drum stands 137,600 Sales commissions 90,300 ? ? Total variable costs 705,200 Contribution margin 498,800 Fixed costs Taxes on factory 13,000 Factory maintenance 26,000 Factory machinery depreciation 86,000 Administrative management salaries 156,000 Lease of equipment for sales staff 26,000 Accounting staff salaries 76,000 ? ? Total fixed costs 383,000 Pretax income 115,800 Income tax ? Net income ?

Required: 2. Compute its contribution margin per unit and its contribution margin ratio

Complete this question by entering your answers in the tabs below.

(Round Contribution margin ratio to nearest whole percentage.)

	TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31, 2017 Per Unit Sales $280 Variable costs: Plastic for casing ? Wages of assembly workers ? Drum stands ? Sales commissions ? ? ? Total variable costs ? Contribution margin ? ? ?

Note: Please solve the problem completely. Thank you.

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