The following costs result from the production and sale of 4,350 drum sets manuf
ID: 2446267 • Letter: T
Question
The following costs result from the production and sale of 4,350 drum sets manufactured by Tom Thompson Company for the year ended December 31, 2013. The drum sets sell for $285 each. The company has a 40% income tax rate.
$
104,400
387,150
13,500
27,000
27,000
77,000
157,000
The following costs result from the production and sale of 4,350 drum sets manufactured by Tom Thompson Company for the year ended December 31, 2013. The drum sets sell for $285 each. The company has a 40% income tax rate.
Required 1. Prepare a contribution margin income statement for the company TOM THOMPSON COMPANY Contribution Margin Income Statement For Year Ended December 31, 2013 Sales Variable costs: Total variable costs Contribution margin Fixed costs Total fixed costs 2.1 Compute its contribution margin per unitExplanation / Answer
Calculation of Contribution margin income statement Particulars No. of units Sale price per unit Total Sales 4350 285 1239750 less: Variable Production costs Plastic for casing -104400 Wages -387150 Drum Stands -143550 less: Variable Selling Cost Sales Commission -95700 Contribution margin 508950 Contribution margin per unit 508950/4350 117
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