(Answered) Question - the following costs result from the production

Accounting

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.

Variable production costs
Plastic for casing	$72,900
Wages of assembly workers	336,150
Drum stands	109,350
Variable selling costs
Sales commissions	64,800
Fixed manufacturing costs
Taxes on factory	10,500
Factory maintenance	21,000
Factory machinery depreciation	81,000
Fixed selling and administrative costs
Lease of equipment for sales staff	21,000
Accounting staff salaries	71,000
Administrative management salaries	151,000

Required:

Prepare a contribution margin income statement for the company.

Compute its contribution margin per unit.

Compute its contribution margin ratio.

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