Interested in a PLAGIARISM-FREE paper based on these particular instructions?...with 100% confidentiality?

Order Now

Untitled

The following costs result from the production and sale of 4,000 drum sets manufactured by Vince Drum Company for the year ended December 31, 2011. The drum sets sell for $250 each. The company has a 25% income tax rate.
Variable production costs
Plastic for casing
68,000
Wages of assembly workers
328,000
Drum stands
104,000
Variable selling costs
Sales commissions
60,000
Fixed manufacturing costs
Taxes on factory
10,000
Factory maintenance
20,000
Factory machinery depreciation
80,000
Fixed selling administrative costs
Lease of equipment for sales staff
20,000
Accounting staff salaries
70,000
Administrative management salaries
150,000
Required
1. Prepare a contribution margin income statement for the company
2. Compute its contribution margin per unit and contribution margin ratio.
3. Interpret the contribution margin ratio from part 2.

You Want A Similar Paper Done? Don’t be stressed, Click Here To Order this essay!!

Interested in a PLAGIARISM-FREE paper based on these particular instructions?...with 100% confidentiality?

Order Now