Question - The following costs result from the production and sale of 4,050 drum sets manufactured by Vince Drum Company for the year ended December 31, 2011. The drum sets sell for $255 each. The company has a 30% income tax rate.
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Variable production costs
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Plastic for casing
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$72,900
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Wages of assembly workers
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336,150
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Drum stands
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109,350
|
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Variable selling costs
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|
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Sales commissions
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64,800
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Fixed manufacturing costs
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|
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Taxes on factory
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10,500
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Factory maintenance
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21,000
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Factory machinery depreciation
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81,000
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Fixed selling and administrative costs
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|
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Lease of equipment for sales staff
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21,000
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Accounting staff salaries
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71,000
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Administrative management salaries
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151,000
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Required:
Prepare a contribution margin income statement for the company.
Compute its contribution margin per unit.
Compute its contribution margin ratio.