The following costs result from the production and sale of 4,600 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $310 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries $ 133, 400 432, 400 174, 800 124, 200 9,000 18,000 78,000 18,000 68,000 148,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio.

The following costs result from the production and sale of 4,600 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $310 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries $ 133, 400 432, 400 174, 800 124, 200 9,000 18,000 78,000 18,000 68,000 148,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio.

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Description: 1 part 1 The following costs result from the production and sale of 4,600 drum sets manufactured by Tight Drums Company for the year endedDecember 31. The drum sets sell for $310 each.Variable costsPlastic for casingWages of assembly workersDrum stan

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...

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The following costs result from the production and sale of 4,650 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $315 each. Variable costs Plastic for casing Wages of assembly workers. Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries $ 139,500 441,750 181,350 130, 200 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? Required 1 Required 2 8,500 17,000 77,000 17,000 67,000 147,000 Complete this question by entering your answers in the tabs below. Required 3 Compute contribution margin per unit and contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage.) TIGHT DRUMS COMPANY…
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $500 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries Required 1 Required 2 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? Sales Variable costs: Complete this question by entering your answers in the tabs below. Contribution margin Fixed costs $ 17,000 82,000 Required 3 Income 26,000 15,000 Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended…