(Solution) - The following costs results from the production and sales of -(2025 Original AI-Free Solution)

Paper Details

The following costs results from the production and sales of 1,000 drum sets manufactured by tom Thompson Company for the year ended December 31, 2008 the drum sets sell for $500 each; The Company has a 25% income tax rate.
Variable production costs
Plastic for casing ...............................................$17,000
Wages of assembly workers ..............................$82,000
Drum stands ......................................................$26,000
Variable selling costs
Sales commissions .............................................$15,000
Fixed manufacturing costs
Taxes on Factory ...............................................$5,000
Factory maintenance ........................................$10,000
Factory machinery depreciation ......................$40,000
Fixed selling and administrative costs
Lease of equipment for sales staff ...................$10,000
Accounting staff salaries .................................$35,000
Administrative management salaries .............$125,000

Required
1. Prepare a Contribution margin income statement for the company.
2. Compute its contribution margin per unit and its contribution margin ratio.
3. Analysis component
Interpret the contribution margin and contribution margin ratio from part 2