The following costs result from the production and sale of 4,750 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $325 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 152,000 460,750 194,750 142,500 Taxes on factory 7,500 Factory maintenance 15,000 Factory machinery depreciation 75,000 Lease of equipment for sales staff Accounting staff salaries 15,000 65,000 Administrative salaries 145,000 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. Required 1 Required 2 Required 3 Compute contribution margin per unit and contribution margin ratio. Note: Round Contribution margin ratio to nearest whole percentage. Contribution margin per unit Contribution margin ratio % < Required 1 Required 3 >
The following costs result from the production and sale of 4,750 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $325 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs $ 152,000 460,750 194,750 142,500 Taxes on factory 7,500 Factory maintenance 15,000 Factory machinery depreciation 75,000 Lease of equipment for sales staff Accounting staff salaries 15,000 65,000 Administrative salaries 145,000 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. Required 1 Required 2 Required 3 Compute contribution margin per unit and contribution margin ratio. Note: Round Contribution margin ratio to nearest whole percentage. Contribution margin per unit Contribution margin ratio % < Required 1 Required 3 >
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
Related questions
Question
pp
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub